India, Argentina sign 'Social Security Agreement' for workers
India and Argentina inked a "Social Security Agreement (SSA)" on Friday to safeguard the legal rights of professionals employed in each other's nations, The Hindu reported. It would reportedly ensure hassle-free international mobility and protect workers from losing social security benefits or deposits. The agreement, which was fast-tracked over the past year, was signed between the Indian Ambassador to Argentina, Dinesh Bhatia, and Argentina's Minister of Foreign Affairs, International Trade and Worship, Santiago Cafiero.
Why does this story matter?
Argentina has around 2,600 non-resident Indians (NRIs) or persons of Indian origin (PIOs). Most of them live in Buenos Aires, the country's capital. They include professionals who work for Indian and global firms. In July, the two nations also agreed to exchange young researchers and startups bilaterally, particularly in the biotechnology and agriculture sectors. Notably, India is Argentina's fourth-largest economic partner, with bilateral trade reaching a historic high of $6.4 billion in 2022, representing a 12% growth rate from 2021.
Growing number of professionals prompts legal framework
The Indian mission in Argentina reportedly said in a statement that the number of Indian professionals working in Argentina for both Indian and multinational companies had been on the rise. Similarly, Argentine nationals seeking jobs in India have also reportedly increased. "These growing number of people-to-people exchanges have necessitated a legal framework to protect their rights, especially those related to social security contributions," it said. The SSA between India and Argentina offers this legal structure, the statement added.
Benefits of SSA
The SSA will reportedly allow professionals from both countries to claim old age, survivors' pensions, and other benefits. It also protects permanent and total disability pensions for employed individuals and applies to legislation in Argentina concerning contributory benefits of the Social Security System. Moreover, the agreement covers rent, subsidy, and lump sum payments according to the national laws of both India and Argentina.
India-Argentina trade ties expanding
Trade relations between India and Argentina have been expanding in recent years, spanning sectors such as IT, agriculture, automobile, and pharmaceuticals. Several major Indian companies, including Tata Consultancy Services (TCS), Infosys, Crisil, Bajaj Motorcycles, Royal Enfield, Hero Motors, TVS, Glenmark, and Godrej, have investments in Argentina totaling more than $1 billion. Likewise, Argentine companies like Globant and Techint have large operations in India.
