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India – Cayman Island bilateral relations
India – Cayman Island bilateral relations
Introduction
Cayman Islands-India relations reflect the international connections between the Cayman Islands and India. While the British Foreign Office manages the foreign relations of the Cayman Islands, India has primarily focused on fostering economic relations with the islands and providing consular services to its residents. The High Commission of India in Kingston, Jamaica, concurrently represents the Cayman Islands.
Historical Roots
Healthcare Collaboration: In a significant development, Narayana Hrudayalaya, a Bangalore-based hospital chain, partnered with the Caymanian Government in April 2010 to establish a hospital in Grand Cayman. This initiative also included the creation of a medical university aimed at training doctors, nurses, and paramedical students. Health City Cayman Islands, spanning 107,000 square feet, became operational on February 25, 2014, marking the first foreign hospital owned by an Indian hospital chain.
Tax Information Exchange Agreement: The Cayman Islands and India signed a Tax Information Exchange Agreement (TIEA) on March 21, 2011. This agreement, the 22nd of its kind for the Cayman Islands and the 5th for India, exemplified the commitment to transparency and cooperation in tax-related matters.
Remittances: In 2011, India was the ninth largest destination for remittances from the Cayman Islands, receiving a substantial sum of US$2.5 million, highlighting the economic linkages between the two regions.
Banking Presence: The Bank of India operates in the Cayman Islands and maintains a branch in Grand Cayman, facilitating financial services and transactions.
Defense Industry Investment: Cayman Islands-based NCBG Holdings, Inc. proposed a 26% stake investment in a joint venture with Indian companies for the production of wiring sets used in military vehicles, aircraft, ships, and other defense machinery. This proposal, aimed at enhancing the defense industry, requires approval from the Indian Government.
Participatory Notes: In a significant finding, a Special Investigation Team (SIT) appointed by the Indian Supreme Court uncovered that the Cayman Islands were the largest beneficiary of participatory notes from India. These notes accounted for 31.31% of the total outstanding Offshore Derivative Instruments. The Cayman Islands held a substantial investment of ₹85,000 crore (US$11 billion) in Indian stock markets as of February 28, 2015, underlining the economic significance of this partnership.
Trade
Bilateral Trade: Bilateral trade between the Cayman Islands and India amounted to US$3.54 million in 2015–16, with a decline from $6.75 million in the previous fiscal year.
Main Exports: India primarily exports non-railway vehicles and spare parts, medical and surgical instruments, iron and steel articles, pharmaceuticals, and electrical machinery and equipment to the Cayman Islands.
Import Trends: India has not imported goods from the Cayman Islands since 2013–14, when it imported $10,000 worth of residue and waste from food industries and prepared animal fodder.
Conclusion
Cayman Islands-India relations have flourished, especially in the economic domain, with notable collaborations in healthcare and finance. The signing of a Tax Information Exchange Agreement and active participation in stock markets underlines the deepening economic ties between the two regions, paving the way for future opportunities and collaborations.
To know more about bilateral relations between India and Cayman Island, please download our booklet.
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