Contentious Tax Break Sparks Debate in UK-India Trade Deal

Britain's trade minister on Wednesday defended a contentious tax break for some Indian workers included in a landmark free trade agreement with India. He rejected accusations that this measure undermines British workers, calling such claims 'absolute nonsense.'

The trade deal, which reduces tariffs on British imports to India, exempts certain short-term Indian workers in the UK from paying into Britain's social security system for three years. While this exemption reciprocally applies to British workers in India, the UK downplayed its significance, whereas India heralded it as a major success.

British opposition parties argued the agreement unfairly favors India over domestic workers. The trade minister emphasized that the UK has similar arrangements with fifty other countries to prevent dual contributions. Meanwhile, Nigel Farage criticized the government for allegedly favoring Indian workers with lower taxes. India maintained the exemption was to prevent dual social security payments for short-term residents.

(With inputs from agencies.)