New Delhi, (IANS) : Union Minister Arjun Ram Meghwal on Thursday hoped that European Union  (EU) member-state Cyprus will increase its investments in India’s fast growing economy after the deadlock over a revised tax treaty was resolved.

The Minister of State for Finance and Corporate Affairs was speaking at a business seminar which hosted Cyprus President Nicos Anastasiades. The conference ‘India-Cyprus Business Session’ was jointly organised by Assocham, CII and Ficci here.

Last year a revised double taxation avoidance agreement (DTAA) was signed between the two countries. The provisions of the new DTAA came into force from April 1, 2017.

The revised accord aims to avoid the burden of double taxation for taxpayers of two countries in order to promote the flow of investment, technology and services.

The minister said the resolution of the DTAA issue and acceptance of Cyprus’ request for removal of its territory from the ‘notified jurisdiction area’ list have paved the way for greater inflow of investments from the EU member-state.

The ‘notified jurisdictional area’ is a term used for a country or territory which does not adheres to an ‘effective exchange of information’ mechanism with the Indian government regarding transactions by Indian nationals in its territory.

Meghwal said that Cyprus should broaden and diversify its investments portfolio in India and also invest in the government’s flagship schemes such as ‘Make in India’ and ‘Digital India’.

On its part, the EU member urged the Indian industry to invest in Cyprus’ banking, finance, shipping and pharmaceutical sectors.

“I am pleased to inform that during my visit to New Delhi, a number of bilateral agreements and Memoranda of Understanding will be signed in the fields of merchant shipping, air services, agricultural cooperation, education and culture,” President Anastasiades said.

“I believe that these areas of cooperation are some of those that have the potential to significantly boost our economic and commercial exchanges.”.