- India and France have updated their 1994 double taxation treaty to modernize provisions, improve transparency, and rebalance taxing rights between the two countries.
- The revised pact lowers dividend tax to 5% for French investors holding over 10% in Indian companies, while raising it to 15% for portfolio investors, encouraging long-term strategic stakes.
- India gains broader rights to tax capital gains on all share sales by French investors, strengthening its authority over cross-border equity transactions.
- Changes to technical services taxation and removal of the MFN clause are expected to reduce disputes and improve predictability for bilateral investment flows.
