Senior government officials from India have warned that India IT sector firms having business units in the UK might be forced to look for alternative locations in Europe due to tough visa rules of the UK government that affect free flow of Indian IT professionals between the countries.

India's commerce and industry minister Anand Sharma discussed the matter with UK secretary of state for business, innovation and skills Vince Cable and the Chancellor of the Exchequer George Osborne. Osborne assured that the UK government has decided not to make any changes in the 'intra-company transfers' for the next two years.

Indian It professionals were concerned over the proposed changes, as it would affect their travel to the country. The move had angered Indian IT industry and the government as it meant that the government would start treating people on an intra company transfers to UK as prospective immigrants.

The Indian minister pointed out that the proposed changes have resulted in bad performance by several Indian companies operating in the UK. He also said that the move would force Indian companies to relocate to other European cities.

"He specifically referred to the UK border agency treating intra-company transfers of IT experts, professionals and highly skilled workers as prospective immigrants which has affected has badly affected the performance of Indian companies operating in the UK," read an official statement from the minister.