Social security pacts with 13 nations in bloc on fast track

India and EU Forge Historic Trade Agreement with Social Security Focus

India and the European Union have announced a landmark free trade agreement that includes an unprecedented commitment to social security arrangements—a first in EU trade negotiations. The agreement, unveiled on January 27, addresses a critical concern for Indian professionals working across the bloc by establishing a framework to expand social security protections. India has already concluded social security agreements with 14 of the EU's 27 member states, including Belgium, Germany, France, Denmark, and the Netherlands. The new trade deal aims to accelerate negotiations with the remaining 13 nations over the next five years, creating a comprehensive safety net for Indian workers throughout the European Union.

Addressing the Dual Contribution Problem for Indian Workers

Currently, Indian professionals working temporarily in EU countries without existing social security agreements face a significant challenge. These workers contribute to local social security funds but cannot claim benefits when they return home after completing their projects or assignments. This creates a financial burden for Indian professionals and their employers, effectively penalizing temporary migration for work purposes. The new social security framework aims to eliminate this disparity by ensuring that contributions made in one country can be recognized and transferred across borders. By establishing bilateral agreements between India and individual EU member states, Indian workers will be able to access accumulated benefits regardless of where they worked within the bloc, making overseas employment more financially viable and attractive.

Framework for Constructive Engagement and Implementation

Commerce Secretary Rajesh Agarwal emphasized that social security agreements naturally fall under the jurisdiction of individual EU member states rather than the European Commission, requiring bilateral negotiations between India and each country. The trade agreement establishes a constructive engagement framework that encourages EU member states to pursue social security pacts with India while maintaining flexibility in implementation timelines. This approach acknowledges the sovereignty of individual nations while creating momentum toward comprehensive coverage across the bloc.

For the first five years, these commitments will stand along with the nudge to the member states to move towards social security agreements though these agreements naturally have to be done bilaterally.

The significance of including social security provisions in the FTA cannot be overstated, as this represents the first instance where the EU has integrated such commitments into a major trade agreement. This move signals India's growing importance as a trading partner and the EU's recognition of the need to protect Indian workers within its borders. The framework is expected to facilitate smoother negotiations by embedding the social security dialogue within the broader economic partnership, leveraging trade incentives to encourage member state participation.

Benefits for Indian Professionals and Business Ecosystem

The expansion of social security agreements offers tangible benefits beyond individual workers. Indian businesses and staffing agencies will find overseas employment ventures more cost-effective, as employees will no longer lose contributions made to foreign social security systems. This reduction in effective costs enhances the competitiveness of Indian skilled workers in European markets and encourages greater participation in European projects and employment opportunities. For Indian professionals, the agreements provide peace of mind and financial security, knowing their contributions will translate into actual benefits regardless of their employment duration in a specific country.

The broader implications extend to strengthening economic ties between India and Europe. As Indian workers gain better protections and incentives to work in EU countries, knowledge transfer and professional networks deepen, benefiting both economies. The trade agreement itself is expected to be implemented within 2026, and the social security framework will begin its active engagement phase immediately, setting a five-year timeline for completing agreements with all remaining EU member states.

Looking Ahead: A Model for Global Cooperation

The India-EU social security initiative sets a precedent for how major trading partners can address the practical needs of migrant workers within broader economic agreements. By prioritizing the welfare of professionals working abroad, both India and the EU demonstrate a commitment to human-centered trade policies that extend beyond tariff reductions and market access. The achievement of securing social security pacts with 14 EU nations already positions India favorably, and the structured framework for completing arrangements with the remaining 13 member states provides a clear roadmap for success.

As negotiations progress over the next five years, Indian professionals working in Europe can anticipate improved financial security and clearer benefit recognition processes. For the EU, these agreements reflect an understanding that protecting temporary workers and Indian talent contributes to economic stability and social harmony. The initiative underscores how trade agreements can evolve to address contemporary labor mobility challenges, establishing a model that other nations and trading blocs may examine and potentially replicate in their own arrangements.