Swiss Move on Double Taxation Clause: A Non-Impact on India-EFTA Trade

The suspension of the most favoured nation clause in the Double Taxation Avoidance Agreement by Switzerland won't affect the India-EFTA trade agreement. Despite potential tax increases, a $100 billion investment from EFTA into India remains secure under a trade deal benefiting both parties.

The Swiss government's suspension of the most favoured nation clause in the Double Taxation Avoidance Agreement (DTAA) is not expected to disrupt the commitments under the trade agreement between India and the EFTA bloc, according to a senior government official.

Concerns arose that this move could impact Swiss investments in India and lead to higher taxes on Indian companies operating in Switzerland. However, the Commerce Secretary Sunil Barthwal confirmed that there's no impact on the EFTA's $100 billion investment commitment to India.

Under the agreement, which includes Iceland, Liechtenstein, Norway, and Switzerland, India is set to receive significant investment for enabling job creation, while offering reduced duties on products like Swiss watches and chocolates. The trade partnership, pending implementation, aims for substantial economic collaboration.

(With inputs from agencies.)