New immigration system curbs software exports to UK: Nath

“We are not asking for more permanent immigration. We are talking about people coming in for a month or so to integrate software systems,” he said.

He pointed out that Indian software companies that could send executives or technical experts into the UK for short periods would be unable to service warranties or sell new systems that would require on-the-spot maintenance in the future. Noting that New Delhi was still studying the new system, Nath said the new system risked becoming a ‘retrograde step’.

Under the old immigration regime, there was special provision for the temporary movement of workers to fulfill commitments under international trade deals. Such liberalisation is one of India’s key demands in international trade talks, such as the bilateral deal it is negotiating with the EU.

The UK Home Office would create a special immigration category for temporary workers, details of which it would release shortly, the report added. Nath said the new restrictions did not square with the UK’s claims to be in favour of promoting free trade in services.

“In the liberalisation of services, the temporary movement of people is an important thing,” he said. Total UK imports of computer and information services from India were 2.7 billion pounds in 2006.

Data obtained by the Association of Technology Staffing Companies, which represents British IT professionals, showed that 38,450 work permits for IT jobs were issued to non-EU residents in the UK last year, more than double the total five years ago, of which 82 per cent went to Indians. Most were intra-company transfers of permanent employees recruited outside the EU.