Treasury Minister Philip Ozouf put pen to paper on the Tax Information Exchange Agreement at the Indian High Commission in London.
He was due to sign the agreement in the Indian capital in March when he spotted clauses in the document which could have put Jersey at a competitive disadvantage if he had put pen to paper.
Despite the document having been seen by senior Island officials, they had not spotted the significance of the clauses that Senator Ozouf realised were not acceptable.
The Senator said: ‘When I was in India, I saw the mutual assistance clauses included in the Indian TIEA that would have put Jersey in an unco-operative position as compared to other jurisdictions.’
Lengthy negotiations have taken place since to agree a form of words that led to the Senator and Indian High Commissioner Rajesh Prasad signing yesterday.
