India and Cyprus today expressed confidence that the recent revision in tax agreement between the two will provide a boost to investment flows. “I understand that the pending issue of revision of the double taxation avoidance agreement (DTAA) has been resolved and the long-pending request of notified jurisdiction area has been accommodated,” Minister of State for Finance Arjun Ram Meghwal said at the India-Cyprus business session organised by industry chambers here.
This will pave the way for Cyprus to invest more in India, not just in portfolio investment, but in key segments like manufacturing and other sectors, he said.
Cyprus President Nicos Anastasiades was also optimistic that the recently-signed DTAA will help further cement economic ties, especially in the investment field. The president pitched Cyprus as one of the fastest- growing European nations that provides investment opportunities in various sectors.
To promote investment and bolster ties, both the countries will sign a number of bilateral agreements during the president’s 5-day trip, which ends on April 29. Cyprus is the eighth largest country in terms of FDI inflow into India and the bilateral trade read $110 million. Meghwal talked of tourism and film production as possible avenues for joint exploration of investment opportunities.
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Besides, he said, setting of the International Solar Alliance could be mutually beneficial. Seeking investments in India, Meghwal said rating agencies post demonetisation have predicted that India’s GDP could cross double digits by 2020.
“India has undertaken many reforms and we are planning to introduce GST from July 1… 2017 will go down in history as the year of economic reforms,” he said.