New Delhi: External Affairs Minister S M
Krishna embarks on a four-day visit to Mauritius and
Mozambique from Friday to further strengthen relations with
the Indian Ocean Rim countries.
In Port Luis, Krishna will hold talks with his Mauritius
counterpart Arvin Boolell on a range of issues, including on
renegotiation of the Double Taxation Avoidance Treaty (DTAA).
Krishna will seek to enhance strategic dialogue with the
island nation as also to deepen economic and cultural ties.
The DTAA with Mauritius is allegedly being misused by
some investors, who route their inflows through the low-tax
island nation, despite being located in a third country. The
practice is known as treaty shopping in the tax parlance.
India had sought to re-negotiate the DTAA with Mauritius,
besides 75 other countries, as it is concerned over a large
tax revenue loss.
During the 2000-2010 period, the maximum FDI inflows into
India came through the Mauritius route. Investors pumped in a
whopping USD 47.24 billion into the country from Mauritius,
constituting 43 per cent of total FDI.
In Maputo, Krishna is expected to focus on expanding
economic and strategic ties with one of the better performing
economies in the region.
This would be the first visit by an External Affairs
Minister to Mozambique since 1999.