India and UK pause BIT talks over tax inclusion dispute
Business
India and the UK have pressed pause on their bilateral investment treaty (BIT) talks because they cannot agree on whether tax issues should be included.
The UK is pushing for tax concessions, but India is sticking to its policy of keeping taxes out of these deals.
On the bright side, both countries are still moving forward with their free trade agreement, which could roll out by May 2026.
India keeps taxes out of BITs
India is also talking BITs with the European Union (EU) and Saudi Arabia.
A senior official explained that keeping taxes out of these treaties helps protect India's financial decisions from outside legal challenges.
While India shows some flexibility in negotiations, it's clear it wants to keep control over its own tax policies.