Press Information Bureau

Government of India

Ministry of Finance

07-April-2011 17:17 IST

Swiss Federal Councillor for Economic Calls on Union Finance Minster ; Both Leaders Discuss Financial Issues of Mutual Interest

The Union Finance Minister, Shri Pranab Mukherjee said that India and Switzerland have a stronger bilateral relationship and there is a big potential to further strengthen this relationship specially in the field of trade and investment. Shri Mukherjee was speaking when Mr. Johann N. Schneider Ammann, Swiss Federal Councillor for Economic called on him in his North Block office this morning. Shri Mukherjee said that the ratification of the Double Taxation Avoidance Agreement (DTAA) signed between the two countries in August 2010 needs to be expedited by the Swiss Government. The Finance Minister said that this would put the institutional framework/mechanism in place which, in turn, would result in sharing of the information between the two countries. Shri Mukherjee said that this would further strength the economic relationship between the two nations.

Speaking on the occasion Mr. Ammann said that the ratification of the DTAA by the Swiss Parliament would be expedited. He said to encourage investment by Swiss Companies, there is a need for further opening of insurance and the banking sectors in India.

Responding to the suggestions of Mr. Johann N. Schneider Ammann, the Union Finance Minister, Shri Mukherjee said that opening of insurance sector is part of the Government’s agenda to bring about major reforms in the financial sector. As far as opening of banking sector is concerned, the Finance Minister said that the Central Bank i.e. the Reserve Bank of India is preparing guidelines for opening of new branches by foreign banks in India and the same are in advance stage.

Besides above, both the leaders discussed the financial matters of mutual interest and the issues likely to be discussed in the forthcoming G-20 Finance Ministers’ Meet in Washington later this month.

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DSM/SAK

Double Taxation Avoidance Agreement urged for expedited ratification to enable tax information exchange and boost bilateral investment. Expedited ratification of the Double Taxation Avoidance Agreement is urged to create an institutional mechanism for exchange of tax information and strengthen bilateral economic relations. The leaders also addressed encouraging investment by opening the insurance and banking sectors; opening insurance is part of the government's reform agenda and the Reserve Bank is preparing guidelines for new foreign bank branches.