India and Malta yesterday signed an agreement on the avoidanceof double taxation and the prevention of fiscal evasion on income tax.

Both countries had a history that stretched back thousands of years and both inherited a legacy from the British

The agreement was signed between Indian External Affairs Minister Preneet Kaur and Foreign Affairs Minister George Vella during a meeting to discuss bilateral cooperation.

Dr Vella described the agreement as “one of the most basic” documents that one must have to facilitate trade between the two countries.

He added that the two countries should shortly be setting up a joint commission and a business council for further discussions at a technical level on visa facilitation, trade agreements and cooperation in the fields of science, technology and education.

The two ministers also discussed relations in the context of the Commonwealth, which India also forms part of, and the EU, which was one of India’s largest trading partners.

Dr Vella outlined Malta’s regional problems, referring to the Arab Spring and its repercussions.

The two ministers drew comparisons between their respective countries, saying that, although size and location differed greatly, both Malta and India had a history which stretched back thousands of years and both inherited a legacy from the British.

Ms Kaur said India was the first country to recognise Malta’s independence in 1964. Diplomatic relations were subsequently established in 1965.

She referred to Malta’s strategic geographical position, which she hoped could be used to its maximum potential.

She said the two countries also fit in with each other’s energy programme, as both had targets to reach by 2020. India could help out Malta due to its expertise in renewable energy.

Other areas of possible cooperation could be the film industry in view of India’s growth in this sector and Malta’s stunning locations.