With improved social security coverage, India is pushing to include a social security agreement in all free trade pacts, including the ongoing negotiations for a trade deal with the US.
The issue is understood to have been discussed in a meeting of Union Labour and Employment Minister Mansukh Mandaviya with Union Commerce and Industry Minister Piyush Goyal.
“The India-UK free trade agreement which includes a double contribution convention would provide a three-year exemption from social security contributions for Indian professionals temporarily working in the UK. This will be of great help to Indians working temporarily in the UK and the plan is to now include such a social security agreement in negotiations for all FTAs,” labour ministry sources said.
According to the latest data from the International Labour Organization’s (ILO) ILOSTAT database, India’s social security coverage has increased from 19% in 2015 to 64.3% in 2025. Sources explained that this acknowledgment from the ILO shows that India’s social security coverage has improved significantly, giving it an advantage in negotiations with other countries as well.
The development is crucial given that India is currently negotiating free trade agreements with nearly a dozen countries including the European Union and a bilateral trade agreement with the US. The issue of including a social security agreement with the US has also been discussed but it is not clear as of now if the US will accept this, they added.
A social security agreement ensures that skilled workers temporarily working in a different country do not have to pay social security contributions in both countries and can pay it only in their home country. The period for this is usually pre-determined in such social security agreements. At present, India has such social security agreements with over 20 countries including Belgium, Germany, Switzerland, Japan, the Netherlands and Australia.
Countries like the US, the US and the EU continue to be a major destination for Indian skilled workers, particularly in the tech and IT sector.
