The Memorandum of Understanding (MoU) will focus on collaboration and building partnership through sharing of technical expertise, building linkages and identification of gaps in the areas of skill development and employment services.
Under the MoU, the two countries will also work for improvement in curriculum, benchmarking of assessment, certification and training methods.
The MoU was signed after a meeting between Minister of State for Labour and Employment K Suresh and Minister of State for Skills and Enterprise of United Kingdom Matthew Hancock.
The MoU will also support development of employment services in India on the lines of National Careers Service, UK.
UKIERI will facilitate partnership of Indian stakeholders with the existing career services in the UK, it said.
Best practices from the UK will be shared with the Labour and Employment Ministry and other stakeholders to help develop the Indian model.
A workshop in this regard would be jointly organised by the Ministry and UKIERI in February.
The MoU will also see institutional capacity building of UK and Indian official and institutes handling skill development and employment services.
India and the UK will also partner 'mentor councils' in the identified priority sectors in responding to the skills demand in the sector.
UKIERI will support in providing UK experts for the mentor councils for up to 10 sectors through institutional partnership between the councils set up by Labour Ministry and the National Skill Academies in the UK.