India
India Reviews Liechtenstein’s Draft Double Taxation Agreement
By Rahul Singh
India is reviewing a draft Double Taxation Avoidance Agreement (DTAA) proposed by Liechtenstein, according to a senior official from the Ministry of External Affairs. The discussion took place during a briefing on the October 25‑28 visit of Liechtenstein’s Prince Alois to India, which also included his wife Princess Sophie, a high‑level official, and a business delegation of top industry leaders.
India already has DTAA agreements with more than 90 countries. Liechtenstein has expressed interest in such an agreement to boost trade and investment, noting that cumulative foreign direct investment from Liechtenstein to India totals $110 million. The Liechtenstein side sees the DTAA as a framework that would provide greater predictability and legal certainty for its companies investing in India.
India currently has a tax information exchange agreement with Liechtenstein. Prime Minister Narendra Modi met with the visiting prince, and the two sides discussed ways to enhance bilateral trade and investment, focusing on advanced manufacturing, technology, innovation, financial services, agriculture, space, education, and skills development.
This is Prince Alois’s fifth visit to India, following his trip for the AI Impact Summit in February. The visit coincides with the first anniversary of the operationalisation of the India‑European Free Trade Association (EFTA) Trade and Economic Partnership Agreement (TEPA). The TEPA aims for $100 billion in investment from EFTA countries—Iceland, Liechtenstein, Norway, and Switzerland—and the creation of 1 million direct jobs in India over 15 years.
The officials highlighted that effective implementation of the TEPA could expand trade and investment ties and create new opportunities for businesses in both regions. They also discussed opportunities for cooperation in skill development and vocational education, including institutional partnerships, expertise exchange, and industry linkages, with an emphasis on advancing trade, technology, and talent.
The article was written by Rahul Singh, Defence Editor at Hindustan Times.
Frequently asked questions
How many countries does India have DTAA agreements with?
India has DTAA agreements with more than 90 countries.
What is the total foreign direct investment from Liechtenstein to India?
The cumulative foreign direct investment from Liechtenstein to India totals $110 million.
What are the goals of the India‑EFTA TEPA?
The TEPA aims for $100 billion in investment from EFTA countries and the creation of 1 million direct jobs in India over 15 years.