Press Trust of India | 16 Dec 2007

India, Hong Kong plan free trade agreement

NEW DELHI: India and Hong Kong have initiated talks on a free trade agreement and plan to enter into a double taxation avoidance agreement (DTAA) to promote bilateral trade and investment.

"We have discussed with Indian leaders to have an investment promotion and protection agreement besides a double taxation avoidance agreement (DTAA). Both the issues were discussed with Finance Minister P Chidambaram, who assured his full support on the issues," Hong Kong Financial Secretary John C Tsang said on the sidelines of a business conference in New Delhi.

Pointing out that 1,500 Indian companies, including seven banks, had their presence in this autonomous province of China, he said Hong Kong was also ready to offer its expertise in building Mumbai as an international financial centre.

"We have expertise in mass financial transactions and an infrastructure company has also approached to assist in building Mumbai as a financial centre," Tsang said.

There are over 40,000 persons of Indian origin in Hong Kong.

The province, he said, has sought more direct flights from Indian cities like Chennai, Mumbai and New Delhi.

Both countries would hold talks on this issue on December 17-18 in New Delhi and a decision may be taken in this regard, Tsang said.

"I hope to see increased number of direct flights between Hong Kong and Delhi as well as Hong Kong and Mumbai and Chennai," said the Hong Kong Financial Secretary.