NEW DELHI, Jan. 19 (Xinhuanet) -- The Indian Government approved the signing of a memorandum of understanding (MoU) between India and Saudi Arabia on combating crime and ratified it, a press release issued by the government said here Thursday.

    The MoU aims at cooperation in combating crimes in all their forms, in particular international terrorism, illicit trafficking in narcotic drugs and psychotropic substances and illegal trafficking in items of historical value and artifacts.

    The MoU says that the two nations would combat international terrorism in accordance with laws and regulations prevailing in both countries.

    They would combat illicit production, manufacturing, trading and distribution of narcotic drugs and psychotropic substances andprecursor chemicals and their illicit use.

    The MoU also says that the two nations would combat counterfeiting of currency and securities and the falsification oftravel documents and visas.

    They would combat smuggling of weapons, ammunition and explosives and their illicit trafficking, the MoU says.

    India also approved the signing of a convention between India and Saudi Arabia for the avoidance of double taxation and the prevention of tax evasion with respect to taxes on income.

    The convention, after it enters into force, will stimulate the flow of investment, technology and services from India to Saudi Arabia and vice versa.

    It will also provide tax stability to the residents of India and Saudi Arabia and facilitate mutual economic cooperation.

    Saudi King Abdullah Bin Abdul Aziz Al Saud will be in India with a business delegation between Jan. 24 and 27.

    He will be the chief guest during India's Republic Day functionto be held here on Jan. 26.

    During the time, the two sides will sign some bilateral agreements. Enditem