India warns UK on tough visa norms; Indian firms may relocate

India today warned the UK that its IT majors may relocate their business to other European countries, if the British government insists on tough visa rules which affect Indian IT professionals.

The issue came up for discussion during meeting of Commerce and Industry Minister Anand Sharma with UK Secretary of State for Business, Innovation and Skills Vince Cable and the Chancellor of the Exchequer George Osborne.

However, Osborne assured Sharma that the British government has decided not to make any change in the 'Intra Company Transfers' for the next two years.

The proposal had upset the Indian IT industry and the government as it meant that the professionals on intra company transfers to UK would be treated "prospective immigrants".

Sharma said this rule has badly affected the performance of Indian companies operating in the UK.

"Sharma also expressed concern that this move may force Indian companies, especially IT companies to relocate to other European capital," an official statement said.

The Minister also raised the issue of the restrictions imposed on non-EU immigration into Britain which is adversely affecting the operations of Indian companies here.

"He specifically referred to the UK Border Agency treating Intra Company Transfers of IT experts, professionals and highly skilled workers as prospective immigrants which has affected has badly affected the performance of Indian companies operating in the UK," it said.

Besides, Sharma also expressed concern over the issue that Indian companies who want to acquire UK firms have been facing considerable delay and long legal hassles.

"He highlighted the concerns of Indian companies who want to visit UK for business meetings and also the long delay in obtaining visa by Indian nationals," it said.

He said Indian experts coming to the UK leave the country after completion of their contractual obligations with their employers in the UK and "therefore they cannot be treated as economic migrants".

Highlighting the vast contributions of Indian professionals to the UK economy, Sharma said that stoppage of post -study work permits to students has not found favourable to Indian students who are not able to recover the cost of their education in the UK universities and therefore they are now looking for options to study in other countries.

"He stressed that this development is expected to impact the UK universities where at present over 40,000 Indians students have been studying," it added.

Sharma was here for the 8th round of India-UK Joint Economic and Trade Committee (JETCO) meeting.

Referring to his meeting with Finance Minister Pranab Mukherjee in New Delhi during the UK-India Economic and Financial Dialogue in the beginning of this month, Osborne clarified that the UK government thereafter has taken the decision not to make any change in the Intra Company Transfers for the next two years and that there will not be any increase in the salary cap for such transfers.

Acknowledging the contributions of Indian people and performance of Indian companies in the UK, he said that UK remains keenly interested in getting highly qualified professionals from India.

Further, the statement said that India and the UK have agreed to concentrate on education and skills development, innovation and healthcare technology, particularly cardiology.

In the advanced manufacturing and engineering sector, the meeting identified several projects  like collaboration between BAE systems and Mahindra & Mahindra, JV between Hindustan Aeronautics Ltd and Rolls Royce and collaboration between Bhushan Power & Steel and CDE Asia Ltd for immediate implementation.

Both the sides also highlighted the scope for greater cooperation in areas like infrastructure, healthcare, skills development, advanced manufacturing and innovative technologies.

The JETCO was established on January 13, 2005 to steer the strategic economic partnership between the countries. The JETCO has been conceived as a business driven institutional framework to enhance trade and investment both ways.

It is understood that Prime Minister David Cameron had personally invited Sharma to attend Global Investment Conference, it added.