The hidden dividend of FTAs: How talent and startups are becoming India’s fastest-growing exports

Free Trade Agreements (FTAs) have traditionally been seen as tools to reduce tariffs, expand market access, and boost trade volumes. But in today’s knowledge-driven global economy, they are unlocking something bigger: enabling talent mobility, supporting innovation-led entrepreneurship, and creating high-skill jobs. FTAs are no longer limited to cargo holds and customs duties; they are reshaping how people, skills, and ideas move across borders.

From trade enabler to talent mobility

Modern FTAs now embed provisions that support the cross-border movement of professionals. They also ease regulatory friction and enable service-led exports. For India, this is unlocking a major advantage: its deep pool of skilled professionals.

The India-UK Free Trade Agreement is a landmark example. Beyond commercial liberalisation, it includes talent-friendly clauses such as the Double Contributions Convention (DCC), which removes dual social security obligations for Indian professionals temporarily posted in the UK. This benefits over 75,000 professionals by improving take-home pay, reducing compliance costs for employers, and encouraging cross-border project deployment.

This model has precedents. The India-Japan CEPA (2011) enabled Indian nurses and care workers to enter Japan’s healthcare market, while the India–Singapore CECA significantly boosted Indian IT and financial services talent, with representation in Singapore’s professional workforce doubling between 2005 and 2020.

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