The UK and India have signed a landmark trade deal ushering in new rules for Indian companies and Indian tech workers, as well as UK companies working with Indian suppliers.

The deal will not only offer cuts to tariffs on UK goods such as whiskey, cars, and clothing, but will also exempt temporary workers from India from paying National Insurance contributions.

Indian workers in the UK on a three year visa will no longer have to pay into UK social security, mainly targeting workers in the UK on Intra Company Transfers.

These visas involve companies that have UK operations and bring in workers from overseas, with legislation originally designed to suit US companies bringing in staff to the UK. Indian companies however, have typically taken advantage of this type of visa, with a large number of Indian IT firms brining in workers to the UK.

Now, these workers will be exempt from paying into National Insurance if they are in the country for three years, rather than just one, though not without controversy.

Conservatives and LibDems claim the new move will disenfranchise UK workers from being hired as NIC have increased this year. Labour says these qualms are a misunderstanding, as short-term workers are often exempt from paying into two social security programmes – when working abroad, workers on the short-term visa will only pay social security into their home country’s system.

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The trade deal with India also extends to procurement trade deals to boost the UK’s clean energy industry, new rules of origin for medical devices, and the promotion of digital systems and paperless trade.

The UK also hopes their new national insurance regime for Indian workers will encourage companies to come to the UK and bring more workers, rather than head to Silicon Valley or return to India.

India’s Ministry of Commerce and Industry said in a statement: “The exemption for Indian workers who are temporarily in the UK and their employers from paying social security contributions in the UK for a period of three years under the Double Contribution Convention will lead to significant financial gains for the Indian service providers and enhance their competitiveness in the UK market that would create new job opportunities, as well as benefit large number of Indians working in the UK.”