Easier, now, for our professionals abroad

India is pushing its social security agenda for professionals working abroad through trade treaties. The India-Britain FTA, a 'chhota peg' before the one with the EU, contains a double-contribution avoidance convention that waives social security payments by Indian professionals working for a limited period in Britain. The contributions represent a tax on Indians unable to access overseas social security benefits once they return to India. India offers employees at home defined-contribution social security, and has signed agreements with over 20 countries for waivers during temporary assignments overseas. Making the convention a part of trade negotiations is a good way to push India's agenda. It is expected to figure in the country's ongoing negotiations for expanding trade not just with the EU but with the US as well.

India is a leading source of expat professionals. The share of temporary relocation overseas is on the rise. The profile of migration is altering, with a climbing share of remittances by white collar employees. Advanced economies with adverse demographics will have to rely on Indian trained office workers to avoid disinflation. Indian manufacturing companies intend to plug into global supply chains. This calls for greater mobility for professionals. Greater cross-border investment flows require accompanying skills transfer. Tying up all these with market access makes it easier for India to push its advantage in services trade.

It may not be easy to convince leading trade partners like the US and the EU, which are facing mounting protectionism. Although countries like Germany and France have separately signed social security agreements with India. This reflects pragmatism over immigration policies by countries that need increased access to India's market and its pool of professionals. India has a short demographic window to supply a trained workforce to the world before rising standards of living and slowing fertility call for adjustments to its migration strategy. It must drive home its current advantage.