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India and Liechtenstein have agreed to consider a proposed Double Taxation Avoidance Agreement (DTAA) to provide greater certainty for investors and businesses, facilitate economic exchanges and strengthen cooperation in tax matters, as the two countries seek to deepen bilateral trade and investment ties.
In a joint statement issued during the state visit of Hereditary Prince Alois of Liechtenstein to India, the two sides acknowledged the receipt of a draft DTAA from Liechtenstein and expressed readiness to consider the agreement. Both sides have expressed their readiness to consider the option of a DTAA, recognising the need to achieve greater legal certainty and predictability for investors and businesses, facilitate economic exchanges and strengthen transparency and cooperation in tax matters, the statement said. The proposed agreement comes as India and Liechtenstein look to expand economic cooperation under the India-European Free Trade Association (EFTA) Trade and Economic Partnership Agreement (TEPA), which came into force in October 2025. The TEPA carries a shared objective of mobilising USD 100 billion in investments into India over 15 years and facilitating the creation of one million direct jobs by EFTA countries. The two sides said the agreement provides a framework for market access, legal certainty, trade facilitation, services and investment promotion. India and Liechtenstein also encouraged businesses and industry associations to explore opportunities through business missions, partnerships, investment facilitation and closer cooperation. Liechtenstein reiterated its commitment to encourage further investment in India, according to the statement. The countries identified several potential areas for collaboration, including advanced manufacturing, machinery and machine tools, precision industries, construction technologies, medical technology, space-related industries, infrastructure, clean technologies, artificial intelligence and financial services. According to MEA Secretary (West) Sibi George, cumulative foreign direct investment inflows from Liechtenstein to India stood at USD 110 million. Liechtenstein-based companies already have a presence in India, including Hilti Corporation, Savannah Seeds and financial services group LGT. George said India had received the draft tax agreement and that it would be examined by experts under the Ministry of Finance. The agreement remains under consideration, with both sides seeking to translate the growing engagement into concrete economic outcomes. They also agreed to sustain the momentum generated by Prince Alois' visit and advance cooperation across priority sectors. (ANI)
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