Why CETA Won’t Help Indian Students Study or Work in the UK—Yet
TL;DR
- The new India-UK Comprehensive Economic and Trade Agreement (CETA) promises tariff cuts, digital trade growth, and talent mobility—but for Indian students, little changes.
- While the deal reaffirms mutual degree recognition, professional qualifications in fields like engineering, medicine, and law won’t see fast-track approval until 2028 at the earliest. Meanwhile, UK student visa rules remain restrictive: dependents are banned for most courses, higher financial proof is required, increased fees, and reduced post-study work rights.
- CETA’s real gains lie in professional mobility—IT consultants, architects, chefs, and corporate transferees get tax breaks, visa exemptions, and easier transfers. For Indian companies, this could save ₹4,000 crore annually. For students, however, the pathway to UK education and work remains as narrow as before.
On July 24, India and the UK signed a Free Trade Agreement that covers a wide range of economic activity – tariff reductions, phased liberalisation on goods, digital trade including contracts, data and e-commerce, investment facilitation, GoI tender access for UK firms, mutual exemption on social security, access and mobility for professionals. The deal still requires UK parliamentary approval and associated legal processes. Full implementation is expected to take a year.
Does CETA have anything for Indian students?
A widely circulated English daily gave this highly enthusiastic assessment:
“The Comprehensive Economic and Trade Agreement (CETA) between India and the UK opens new pathways for students and young professionals. Beyond trade, it fosters talent mobility, boosts internship and exchange opportunities, enhances startup ecosystems and supports sustainable career sectors. With mutual recognition of qualifications and expanded educational partnerships, CETA lays the foundation for globally aligned, future-ready career journeys.”
Let us look at this agreement in detail and see if the UK is offering anything to Indian students.
“Mutual recognition of qualifications” sounds good … but that pre-dates the present CETA by a full three years. Way back on July 21, 2022, India and the UK signed the Mutual Recognition of Academic Qualifications MoU. The two countries formally recognised each other’s undergraduate, master’s, and doctoral degrees, plus Indian senior secondary qualifications (A‑Levels equivalent) as meeting UK entry standards.
But neither this agreement nor anything mentioned in CETA grants automatic, blanket acceptance of any degree awarded by any institution. If the awarding institution has Indian government recognition and recognition by the UK National Information Centre for the Recognition and Evaluation of International Qualifications and Skills, then degrees from bachelor’s to doctoral will be recognized for general purposes. In the case of degrees/diplomas/certificates issued by UK-based institutions to students of branch campuses and blended/partially online programs, qualifications will be approved on a case-by-case basis. Professional degrees are excluded from this deal. Degrees in engineering, medicine, nursing, pharmacy, law, and architecture remain regulated by respective bodies in each country. People holding such degrees who are considered for employment in the UK will still require registration and exams for UK certification.
CETA reaffirms “in principle” mutual accreditation and recognition of qualifications; however, all the ‘ifs and buts’ surrounding this provision mean that as of now, Indian qualifications are NOT automatically recognized in the UK for regulated professions.
- Mutual recognition of professional qualifications is NOT effective immediately—this will require additional implementation steps.
- CETA binds both governments to “negotiate” Mutual Recognition Agreements (MRAs) for regulated professions (e.g., engineering, architecture, nursing, accounting, dentistry) within the next 36 months.
- MRAs may be rolled out one profession at a time. Engineering, for instance, may come later than architects or accountants. The MRAs will likely initially cover nurses, accountants, architects, dentists, and possibly engineers or lawyers—but not all professions are guaranteed future inclusion. It’s subject to separate negotiation, sector by sector, with scrutiny directed at institutional facilities, training standards, internship requirements, and licensing. Professionals may still need to meet UK regulatory requirements or pass exams if standards don’t map perfectly.
- Only new MRA-covered qualifications post-implementation will benefit. Existing Indian professionals already in the UK or qualified before MRAs may need to requalify under the old rules.
CETA — and any MRAs—must be ratified by both parliaments before coming into force. That means there may be additional delays beyond the 36‑month target. Realistically, mutual recognition of qualifications (of any professional degree) will not be an on-the-ground reality before 2028 at, earliest.
Under CETA, India and the UK agree to promote joint degrees and hybrid programs, but so far, such degrees and programs are mainly on paper. On July 29, Union Education Minister Dharmendra Pradhan issued Letters of Intent (LoIs) to four foreign universities — Australia’s Western Sydney University and Victoria University (Noida), La Trobe University (Bengaluru), and the UK’s University of Bristol (Mumbai)— for establishing their campuses in India.
Incidentally, as per reports, three US universities are currently exploring India campus feasibility (Illinois Institute of Technology, University of Michigan, and Purdue University), and so is an Italian design school (Istituto Marangoni). Aside from the University of Southampton, only two Australian universities (Deakin University and University of Wollongong) are actually up and running. Both have branch campuses near Ahmedabad.
Bear in mind that, in the context of foreign universities setting up campuses in India, a Letter of Intent is a formal expression of interest, but it does NOT constitute approval. It means that:
- The university has submitted a detailed proposal to the UGC and met initial eligibility criteria—like being in the top 500 globally or having a strong reputation.
- The LoI entitles the university to
- Identify a campus location in India.
- Begin local hiring or partnerships.
- Set up infrastructure and local governance plans.
- Submit a detailed implementation plan within a specific time frame (usually 1–2 years).
- From this point onward, the university will be guided and reviewed by UGC-appointed committees.
A Letter of Intent is NOT a license to operate—classes cannot begin, degrees can’t be granted, and students can’t be admitted until the university receives final approval. Neither is there anything legally binding about a Letter of Intent. The Indian government does NOT legally bind itself to allow the university to operate indefinitely or under any guaranteed terms; the foreign university is NOT legally bound to implement its plan. It can back out if it finds regulatory, financial, or operational challenges.
For more information:
Does CETA open new pathways for students?
Sorry. The UK’s student visa rules are IN NO WAY changed by CETA.
Since mid-2023, the UK has adopted five measures that have slowed entry of Indian students into the UK to a trickle.
Family members (dependents) are largely banned.
Until late 2023, students at degree and taught postgraduate levels could bring dependents (spouse/partner and children). From January 2024, this changed: only students on postgraduate research‑level programs (e.g., PhDs) can bring dependents; all others are prohibited from doing so. Result: dependent visas issued have dropped by around 80 percent year‑on‑year in early 2024
Higher financial proof is now required.
Applicants now must show they’ve held sufficient funds for tuition fees and living costs for 28 consecutive days before applying — previously, this duration was more flexible or lower.
“Sufficient funds” in London means between £1,265 and £1,483 per month. Outside London, it means between £1,015 to £1,136 per month. These amounts exclude tuition (which must be shown separately) and include proof of first-year fee payment.
Students may not switch to work visas before their course ends.
From January 2024, students cannot switch directly from a Student visa to a Work visa (e.g., Skilled Worker) before completing their course. If they wish to change visa category earlier, then they must exit the UK and apply from abroad.
Visa fees and the healthcare surcharge have been hiked.
Visa fees have been raised from approximately £363 to around £490 — a near 35 percent surge. The IHS (Immigration Health Surcharge) has increased—from around £624 to approximately £776 per year.
The period for the post‑study (Graduate Route) visa has been reduced.
From mid‑2025, the stay‑back period allowed under the Graduate Route will be:
- Postgraduate taught students: 1.5 years (18 months) instead of 2 years post‑study.
- PhD/research students: presumably still eligible for 3‑year stay (likely unchanged)
In 2025, student arrivals in the UK dropped by 17 percent, visa applications dropped by 37 percent year-on-year overall, and dependent visas fell by 83 percent. The reductions are a clear result of the changed student visa policy.
With regard to student visa rules, CETA has changed NOTHING. UK politicians (especially Labour ministers) are currently debating tighter limits on low‑paid post‑study jobs and stricter investor and sponsor rules. Labour’s idea of immigration reform is reducing dependency on low-cost migrant labor, boosting domestic skills, and improving pay standards. The government’s May 2025 Immigration White Paper proposes …
- Raising the required minimum qualifications to degree level (RQF 6)—reversing the previous policy that allowed A-level equivalents for skilled work visas.
- Raising the standard salary threshold for Skilled Worker visas from ~£26,200 to £38,700, with further uplift to £41,700 with effect from July 22, 2025
- Abolishing the Immigration Salary List (ISL), which allowed employers to sponsor migrants at a discount (typically 80 percent of the going rate). Only roles on the new Temporary Shortage List may use reduced thresholds, and only under strict conditions.
- Emphasising employer compliance. From 2025 onwards, sponsors must not charge workers for sponsor license costs, CoS fees, or Immigration Skills Charge. The White Paper proposes more enforcement, including creating a Fair Work Agency, lengthening license action plans, and introducing mandatory cooling-off periods (minimum two years) for revoked sponsors. Employers will be held to strict standards through right-to-work checks, vacancy verification, labour and salary audits.
- Banning new overseas recruitment for care worker roles under Skilled Work routes (wef July 22, 2025). This follows a stringent eligibility revision in March 2024, which prohibited dependents and tightened sponsor eligibility for care roles.
Labour’s changes aim to phase out “low-paid skilled routes,” making it much harder for recent graduates (including those on post-study work visas) to take up low-salary jobs—even in shortage sectors. And care-worker-specific thresholds have also been tightened sharply. All this will sound good when Britain goes to the polls again: “British jobs for British workers”. For Indian professionals, this signals that securing post-study job transitions (e.g., moving to Skilled Worker status) will demand better-paid, degree-relevant roles and employers who meet high compliance standards. The investor route isn’t directly affected here, but sponsorship regulation tightening may impact eligibility and costs broadly.
The new agreement DOES benefit Indian professionals.
It introduces new visa categories and relaxed entry rules for:
- Contractual service suppliers (e.g., IT consultants, engineers)
- Intra-corporate transferees (e.g., employees of Indian firms moving to UK operations)
- Independent professionals, including niche fields like chefs, yoga instructors, classical musicians, architects, and business consultants
It exempts Indian professionals and their employers from UK social security contributions for up to three years.
This results in about 20 percent savings on employment costs and benefits over 75,000 professionals, with potential tax and salary gains worth Rs 4,000 crore for Indian companies globally.
Visa mobility rules under CETA (for service providers, intra-corporate transferees, business visitors, etc.) are effective immediately
So professionals can work short-term or relocate. But, as we have already pointed out, qualification recognition is NOT. It follows behind, within the three-year window
It supports enhanced internship, apprenticeship, and exchange programs, especially benefiting early-career professionals.
It will mean easier people-to-people mobility and skill development linkages with UK institutions and companies
It benefits Indian companies with UK operations
As it allows them to leverage talent mobility, save money that would have otherwise gone into social security contributions, and streamline cross-border operations. It has the potential to make Indian firms more competitive in the UK markets.
This “new” CETA follows a very old paradigm. Remember your history lessons? For 190 years (1757 to 1947), Britain siphoned off India’s resources at cheap rates and then sold back finished products to India at high cost.
In the 21st century, the most valuable of all resources is skilled manpower … which includes talent, creativity, and entrepreneurship.
The UK tightens immigration for low-paid or student-track migrants while keeping doors open for those India has already trained. It’s not just skilled migration—it’s filtered migration, designed to cherry-pick value after India has done the hard work.
YUNO LEARNING went over CETA with a magnifying glass. We found some measures that help the UK skim off India’s highly qualified professionals, but nothing that helps Indian students study and find employment in the UK.