India will examine a draft India Liechtenstein tax pact submitted by Liechtenstein as the two countries work to accelerate an agreement intended to support investment ties, a senior Indian official said on October 27, 2026.

Key Takeaways

  • India’s Finance Ministry will examine the proposed double taxation avoidance agreement.
  • Liechtenstein views the agreement as a way to provide greater predictability for its companies investing in India.
  • The proposal comes as the countries focus on implementing the India-EFTA trade agreement.

India Liechtenstein tax pact remains a proposal

Ministry of External Affairs Secretary (West) Sibi George said India had received a draft double taxation avoidance agreement from Liechtenstein. Finance Ministry experts will examine how it could support further economic engagement, he said.

George said Liechtenstein had expressed interest in the agreement as part of its efforts to expand investment and business with India. The pact has not been announced as concluded, and no effective date has been disclosed. The existing tax treatment and the draft’s specific provisions were not detailed.

Trade agreement provides a wider investment framework

Prime Minister Narendra Modi and Hereditary Prince Alois, Liechtenstein’s acting head of state, discussed trade and investment alongside cooperation in science, technology, innovation and skills. The prince’s official visit to India runs from October 25 to 28.

Their talks focused on implementing the India-EFTA Trade and Economic Partnership Agreement. That agreement envisages $100 billion in investment from European Free Trade Association countries over 15 years and the creation of one million jobs in India. Those figures are envisaged outcomes, not investment or jobs already delivered.

Current investment and business ties

Liechtenstein’s cumulative investment in India stands at $110 million. Bilateral trade totalled about $3.3 million in FY26, including less than $1 million in Indian exports.

The prince’s business delegation includes Hilti, Savannah Seeds and wealth management group LGT. Hilti’s new manufacturing facility in Vadodara is expected to export around 95% of its production, George said. LGT has established a presence in India through a subsidiary.

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