India and Korea today agreed to make efforts to expeditiously conclude the revision of double taxation avoidance pact and enhancing trade.
"Both sides agreed to make an effort to conclude the revision of the Korea-India Double Taxation Avoidance Convention (DTAC) expeditiously after reviewing their respective positions on major pending issues for the revision," according to the minutes of the Fourth India-Korea Finance Ministerial Meeting.
It was attended by Finance Minister P Chidambaram and Korean Deputy Prime Minister and Minister of Strategy and Finance Hyun Oh Seok.
Also Read
Both the nations agreed to consider issuing licences for establishing bank branches and offices in each other's country, said the minutes.
They agreed on the need for cooperation in financial supervision as well as discussing and concluding an MOU on financial supervision between the RBI and the Financial Services Commission, Korea.
The two countries underscored the need to evolve a vision for medium and long-term cooperation between them for systematic and close bilateral cooperation. They agreed that identified research institutes of the two countries would jointly discuss this subject.
Acknowledging that the India-Korea Comprehensive Economic Partnership Agreement (CEPA) has contributed to enhancing trade and investment flows, the two economies agreed to continue their consultations on the pact.
They also agreed to make efforts to promote SME cooperation between the two countries.
Both decided to strengthen cooperation in trade by means of the Master Interbank Export Credit Agreement, worth USD 200 million, between the Export-Import Bank of Korea and State Bank of India. The pact is to be signed this month.
On infrastructure development, the minutes said India agreed to the proposal from Kore to sign the MOU on railways cooperation and for holding a senior officer level railways cooperation meeting between the two countries.
The Indian side also agreed to a Korean proposal to sign the Framework of Cooperation (FOC) on roads and to hold a Joint Committee Meeting on road cooperation between the two countries after the FOC has been signed.
India urged Korea to encourage investment by Korean long- term infrastructure funds in the various instruments in India. The Korean side agreed to consider it positively.
