New Delhi: Expressing commitment to combat tax evasion, India and UK Tuesday said the Double Taxation Avoidance Convention (DTAC) will improve transparency in tax- related matters and promote mutual economic cooperation.
"Both countries are committed to the fight against tax evasion and avoidance and are strong proponents of transparency in tax matters," said a joint statement issued after the meeting between Prime Minister Manmohan Singh and his UK counterpart David Cameron here.
It said DTAC, signed in October, will provide tax stability to Indian and UK residents and facilitate economic cooperation between the two nations.
It will also stimulate flow of investments, technology and services between India and the UK.
On the long-pending free trade agreement between India and the European Union (EU), both the nations expressed hope that a political agreement would be reached this year.
India and the EU are negotiating the pact since June 2007 and have missed several deadlines to conclude the talks due to various differences.
"The leaders underlined their strong commitment to a successful outcome to the EU-India negotiations for a broad based, balanced and ambitious FTA that will generate jobs and growth in both countries, and their hope for political agreement in 2013," the statement said.
On the infrastructure sector, both the sides noted the UK?s interest in cooperating with India for the development of a new Bengaluru-Mumbai Economic Corridor (BMEC).
"The leaders agreed to examine and evolve the modalities and content of a feasibility study of this project concept through mutual discussions and to work out a roadmap for a possible partnership in this area," the statement said.
The statement said that energy security is a major issue confronting both the UK and India and the two leaders agreed to cooperate in facing this common challenge.
"The leaders welcomed the extensive collaboration in the energy sector including on oil and gas, renewable energy, energy efficiency, the power sector and business leadership on low carbon technologies," it said.
Both the sides agreed to explore ways to deepen policy, commercial and research collaboration on energy, biofuels, and environmentally friendly technologies.
India and the UK are net importers of energy and have strong demand for imported LNG.
"The two leaders agreed to work closely to address this issue through joint cooperation by forging partnerships, including commercial partnerships, to diversify LNG supply sources and to develop natural gas infrastructure in each other’s country," the statement said.
Both the sides agreed to open a dialogue between relevant agencies working in the field of petroleum conservation in both the countries in different sectors of the economy.
"The two countries would promote joint cooperation through activities where the exchange of knowledge, technology and experience in the field of fuel conservation could bring mutual benefit to both countries," the statement added.
Cameron and Singh also agreed to encourage Indian PSUs and UK oil and gas companies to explore the possibility of upstream oil and gas sector investment in India, the UK and in third countries, with a view to sourcing hydrocarbons to meet their energy requirements.
The UK-India bilateral trade was USD 16.25 billion in 2011-12. Between April 2000 and November 2012, India has received FDI worth USD 17 billion from the UK.