The Indian government announced on Friday that it might need to renegotiate its double taxation treaty with Switzerland. This consideration comes in light of a recent trade agreement between India and the European Free Trade Association (EFTA) countries, which include Switzerland.
The Ministry of External Affairs (MEA) spokesperson, Randhir Jaiswal, confirmed the likelihood of renegotiation during his weekly media briefing. The renegotiation is seen as essential following Switzerland’s suspension of the most favoured nation (MFN) clause in the existing treaty.
This diplomatic decision coincides with a $100 billion investment proposal from the EFTA member states—Norway, Switzerland, Iceland, and Liechtenstein—as part of a larger free trade agreement settled in March. Although the agreement is awaiting implementation, it was influenced by a ruling from the Indian Supreme Court concerning Nestle, leading to the withdrawal of the MFN status by Switzerland.
(With inputs from agencies.)