Social Security Part Of Every FTA India Is Negotiating, Say Government Sources

India's upcoming free trade agreements with the European Union, the United States, and other countries will include dedicated provisions on social protection and contribution portability, according to official sources.

Social security is becoming a critical component in all the FTA negotiations, they said, adding that with increasing labour mobility and overseas employment, particularly among Indian youth, clauses on social security coordination are now non-negotiable.

"A lot of Indian workers that shift out of the country want to come back. In a lot of cases, when they want to come back, they risk losing pension accrued in that country since there's no social security pact between India and the country in question. Increasingly, repatriation is real phenomenon. Our youth doesn’t want to lose out on money paid into foreign social systems,” one of the persons cited above said.

In the India-UK FTA, a proposed Double Contribution Convention Agreement (DCAA) is being discussed to prevent Indian workers from making duplicate social security payments in both countries.

The DCAA, once in force, will exempt Indian professionals and their employers from paying social security contributions in the UK for short-term assignments of up to three years.

Including such provisions in FTAs is also expected to pave the way for smoother bilateral social security agreements (SSAs) with developed economies, many of which are increasingly linking market access to domestic welfare and compliance frameworks.