India-EU FTA: One-stop hub to aid movement of skilled professionals to EU

Supports IT services industry and students

As the US makes the movement of skilled foreign talent increasingly difficult, Europe is moving in the opposite direction — opening its doors wider to Indian professionals under the newly concluded India-European Union (EU) free trade agreement (FTA).

 

The pact will lead to the setting up of a European Legal Gateway Office in India, a one-stop hub to facilitate and support the movement of workers to the EU, beginning with the information and communications technology (ICT) sector. This is expected to make it significantly easier for Indian information technology (IT) professionals to move and work across member states of the EU, the bloc that represents India’s second-largest technology market after the US. 

Indian IT firms stand to gain from greater opportunities in Europe, including easier cross-border provision of services (Mode 1 under the General Agreement on Trade in Services, or GATS) and potentially improved mobility for professionals (though Mode 4), said Nasscom, the industry body representing Indian IT services sector. 

India’s $280 billion IT industry remains heavily dependent on the US for the bulk of its revenue, but the UK and the EU also contribute a meaningful share. With H-1B visa processing becoming more complex — even renewal interviews now being pushed into next year — and geopolitical uncertainty persisting, IT services firms may increasingly look to Europe to deploy their talent as enterprises across the region accelerate digital transformation of legacy systems.

 

“Given the geopolitical challenges, the FTA diversifies markets for Indian IT exporters, providing a hedge against global trade uncertainties. It strengthens India's position in global value chains for digital services,” Nasscom said in a statement.

 

The agreement is also expected to deepen EU-India collaboration in technology, innovation, and digital services. Nasscom believes this could lead to higher European investment in India’s IT ecosystem, joint ventures, and greater research and development (R&D) collaboration in areas such as artificial intelligence (AI), semiconductors, clean technology, and startups. Indian IT firms could also benefit from technology transfer, co-creation, and expanded partnerships.

 

India had struck a similar deal with the UK last year through the Double Contribution Convention, which exempts Indian workers and their employers from social security contributions in Britain for up to three years — significantly boosting take-home pay for employees and lowering costs for Indian companies. The move was aimed at making the UK a more attractive destination for Indian professionals.

 

TCS, Infosys, and Wipro did not respond to queries on the EU agreement.

 

Sachin Alug, chief executive officer (CEO) of NLB Services, said that as European organisations expand their delivery footprints in India, the focus is shifting beyond offshore hiring to building more resilient global capability centres (GCCs) with stronger governance, compliance, and operating rigour.

 

“This evolution is expected to drive sustained demand for specialised capabilities across compliance and trade, ESG (environmental, social, and governance) and sustainability reporting, data protection and regulatory programmes, digital and engineering delivery, GCC build-outs, and workforce and vendor governance,” Alug said.

 

The FTA also proposes collaboration in strategic AI domains, including large language models (LLMs), multilingual natural-language datasets, AI training data, and AI solutions for public goods such as healthcare, agriculture, and climate action, along with a focus on AI safety, testing, and evaluation.

 

In semiconductors, the two sides will establish a cooperation framework covering joint research and development, reciprocal talent and skills exchanges, advanced manufacturing and packaging, and strategic supply-chain partnerships.

 

“By eliminating or significantly reducing duties on high-end European machinery and upstream components — which account for more than 70 per cent of semiconductor fab capex — the agreement could lower project costs and improve the global competitiveness of India’s fabs and OSAT (outsourced semiconductor assembly and test) units,” Ashok Chandak, president of the India Electronics and Semiconductor Association, said in a statement.

 

For students also, the FTA brings good news. The deal talks of strengthening mobility exchanges of students, academics and researchers through initiatives such as the Union of Skills, Erasmus+, including Erasmus Mundus Joint Master Programmes, and Marie Skłodowska-Curie Actions (MSCA), along with Indian funding programmes, such as the Scheme for Promotion of Academic and Research Collaboration (Sparc).

 

Mayank Maheshwari, cofounder and chief operating officer (COO) of foreign higher education consultancy University Living, said that the uncapped mobility for Indian students expands the choice set for them, making Europe a more deliberate option alongside traditional destinations.

 

"Students are becoming more thoughtful and long-term in how they plan their education journeys. They are evaluating destinations not just on reputation, but on overall experience, clarity, and outcomes over several years. So, Europe benefits in this context for a few clear reasons. First, it offers strong academic quality across a wide range of public and private universities, often with more accessible fee structures. Second, it provides multiple study and work pathways across countries, giving students flexibility as they think beyond a single campus or city," Maheshwari said.

 

The executive added that the India-EU deal signals long-term policy intent and cooperation around talent and mobility, which helps students feel more confident when planning multi-year academic and career paths, widening Europe’s appeal in a meaningful way.