Analyse the significance of recent recent agreement signed between the governments of India and the United States to implement the Foreign Account Tax Compliance Act (FATCA) for both the countries. (200 Words)

FATCA agreement between both the countries herald a new platform for mutual cooperation that will benefit both the countries---

1. economic significance--- india-us agreement on FATCA will foster genuine investments contributing to positive growth. The tax compliance will bring legitimate revenues to both the countries that will benefit the fiscal situation of both the countries.

2. money-laundering---the tax evasion has important linkage with money laundering and illegal proceeds. Terrorism financing are now using sophisticated financial channels to find anti-state activities. Checking such proceeds by regulating tax information will bring both the countries closer in counter-terrorism efforts.

3. public diplomacy---such agrrement will let the country to engage with private institutions and non state actors, becoming a tool of public diplomacy promoting international cooperation

4. bandwagon-effect----india and US are among the top 3 economies of the world.Both are showing uptrends in growth projections. Such treaties will force other countries to sign similar treaties to economically engage with india and america. Therefore, this will bring more economic regulation in globalised world.

however, we should keep in mind that India is having complex anti-money laundering law. It still does not have a comprehensive legislation on enforcement, prosecution and attachment of propert. The confusion surrounding the need for making the names of tax-evaders public and the question of time and stage of starting prosecution in investigation process discourage other countries to cooperate.