Highlighting the "significant business uncertainty" faced by USD 110 billion Indian IT services industry in the wake of Britain's exit from the EU, Nasscom today called for a "fresh" and "considered review" of the proposed changes in visa regulation in the UK.
"Given the high levels of business uncertainty for our sector caused by the decision of the UK to leave the EU, we would ask that the further changes planned for April next year, including the increase in salary thresholds for Tier 2 ICT visas and the introduction of the Immigration Skills Levy, be subject to fresh, considered review," Nasscom said in joint letter with its trade counterpart in Britain, TechUK.
They expressed willingness to work with both the countries to ensure that any changes remain justified in the new context, given the "significant business uncertainty".
Under new visa rules announced last week by UK Home Office, those applying after November 24 under Tier 2 intra-company transfer category would need to meet a higher salary threshold of 30,000 pounds from 20,800 pounds earlier.
This route is largely used by Indian IT firms in the UK.
"It is crucial our fast growing and high value tech sectors can rely upon an effective immigration policy that attracts high-skilled workers and minimises barriers to the flow of talented people between our two countries," it said.
The third largest source of FDI into the UK, India is second only to the US in ICT with USD 19 billion of tech exports in 2015.
"Indian IT companies play a key role in driving the UK's growth and prosperity by significantly enhancing productivity and global competitiveness of British businesses, contributing to overall growth and job creation of UK economy," it said.
It added that both governments should share best practice in delivering digital skills training and partner with the industry to boost digital economy in both countries.
The associations extended their support for a Free Trade Agreement that "simplifies" trade of goods and services.
"...The key ask to both governments is for a high skilled worker mobility agreement, along with an agreement on the free movement of data," it said.
Movement of skilled tech workers from India needs be seen as trade priority rather than an immigration issue, it added.
"Temporary placement of highly-skilled individuals into the UK provides a significant economic boost yet has a negligible impact on net migration," it said.
Stating that sectors like FinTech, cyber security, Internet of Things and smart cities provided fertile ground for new joint initiatives, the statement urged the UK to consider establishing a tech hub in India on the lines of British Embassy in Israel.
Disclaimer: No Business Standard Journalist was involved in creation of this content
