Supplementary evidence from UK India Business
Council (formerly IBPN)
SUPPORTING EVIDENCE
Visas
What barriers in UK immigration laws are
getting in the way of trade and investment into the UK from other
countries and in particular India?
The UK currently has a sophisticated immigration
system which accommodates over 84 ways to enter the UK. Our immigration
laws regulate the movement of people not trade and investment
but do indirectly have an impact trade and investment. UK business
is assisted by UK Trade and Investment (UKTI) which advises UK
businesses wishing to trade or expand overseas and overseas business
wishing to trade or expand into the UK.
The UK immigration system does not treat nationals
from India differently from others, save that they, like many
other countries are visa nationals and so need a visa to enter
the UK even when entering as visitors. The list of visa nationals
is determined by Europe and no longer the UK. Additionally as
Commonwealth nationals some Indian nationals will have the option
to apply to enter the UK under the working holidaymaker scheme
and under the UK ancestry route. Perhaps both schemes could be
promoted in India as not as many Indians enter under these schemes
as say Australians, New Zealanders and Canadians. There are a
large number of Indian nationals under 30 who would benefit from
spending two years in the UK under the working holidaymaker scheme.
In the year 2005-06 UK received 72,461 applications
for Working holiday makers of these there were 6505 applications
from India of which a mere 1547 were issued giving a refusal rate
of over 72% as opposed to a global refusal rate of 23% and even
higher rate than the 57% refusal rate in South Asia.
Most Indians entering the UK to work do so under
the work permit scheme. To obtain a work permit a job offer is
needed and there must be a UK entity that can sponsor the application.
Indians do benefit from the work permit scheme.
69,392 work permit applications were received
in 2005-06 of which 67,401 were issued. Of these, 23,248 applications
were from India of which 21,967 were issued.
The highly skilled migrant programme (HSMP)
is another immigration category that benefits Indian nationals
as a large number of Indians enter the UK to work under this programme.
A highly skilled migrant can enter the UK as an employee or self
employed.
Other categories include sole representative
visa (no investment is required here. This is an "entrepreneur
visa" that requires an investment of £200,000 and a
person needs to be actively involved in running the business and
create employment for two EU nationals. Lastly there is the investor
category where a person can be a passive investor but needs to
invest a £1 million of which £750,000 has to be in long
term securities).
In 2005-06 UK received 386,264 non settlement
Visa Applications in India and issued 310,174 visas against these.
The visa refusal rate in India was 19.3% against a global refusal
rate of 18%.
What should MPs be doing to encourage investment
and entrepreneurs from abroad?
A change that would help trade and investment
with India and indeed other countries would be the relaxation
of the mandatory requirement under the HSMP for the applicant
to have a degree (many talented skilled nationals indeed many
entrepreneurs do not have degree eg Bill Gates, Richard Branson
and Mark Zuckerberg the founder and CEO of Facebook).
Overall the UK system does make it easy for
overseas nationals including Indians to enter the UK for employment
and business. The disadvantages are however:
— requiring a visa for even business
trips. Perhaps the British High Commission and Consulates could
make this easier—it can be difficult for some Indians to
obtain visas as often the entry clearance officer assumes that
the applicant intends to remain in the UK.
— The HSMP requires a degree and although
the Indian work force is well educated many talented nationals
do not have degrees. Perhaps there could be recognition of qualifications
that are not degrees and a greater encouragement for Indians with
certain skills to come to the UK.
— Promote the working holidaymaker
scheme more easily in India.
In addition, favorable tax schemes, exchanges
schemes between Indian and the UK, more favorable deals offered
by Development Regions and greater recognition of Indian qualifications
which are not of UK degree level may also help.
Finally, as you may be aware, the UK immigration
system as we know it is currently being replaced by a points based
system. Applications will primarily be made at British posts abroad.
MPs could help ensure uniformity in assessing applications as
currently posts vary widely with those in the US, for example,
enjoying low refusal rates compared to those in India which have
very high refusal rates.
EU VISAS
It should also be noted that Indians living
in the UK on Indian passports but who have a right to stay require
visas to enter the Schengen countries—because UK stayed
out of the treaty. The procedures to get a Schengen visa are very
difficult and restrictive for those requiring business travel
within Europe.
Indians who have permanent residence in the
UK, do not need a UK visa each time they go in and out. However
to travel to the EU they do need a visa and they are only ever
given single entry or limited 3-6 months. This is a major disincentive,
when compared to the USA and Canada who often give 10 years multiple
entry visas.
Although this could be viewed as more of an
EU issue than a problem for the UK, if UK wants to see itself
as a bridgehead to the EU, greater opportunity for flexibility
of travel needs to be made available to Indians that want to lead
on EU wide business, in order to encourage them to lead these
operations from the UK rather than favouring a Shengen country.
November 2007
| 
