India-Asean conclude FTA in services, investments

India and the 10-nation Asean (Association of South East Asian Nations) on Thursday finalised a free trade agreement (FTA) in services and investments, a key move aimed at strengthening economic engagement between the regions.

"It gives me great pleasure to see that our commemorative summit today coincides with the conclusion of negotiations for the FTA in Services and Investments. "This represents a valuable milestone in our relationship. I am confident it will boost our economic ties in much the same way FTA in goods has done," Prime Minister Manmohan Singh said while addressing the summit.

After operationalising the FTA in goods in 2011, both sides were engaged in widening the base of the pact by including services and investments. At present, trade between India and the Asean stands at USD 80 billion. Both the sides have aimed at increasing it to USD 100 billion by 2015.

Singh said that following the implementation of FTA in goods, trade grew by 41 percent in 2011-12.

"Bilateral flows in investments have also grown rapidly to reach USD 43 billion over the past decade. As Asean investments into India have multiplied, Asean countries too have emerged as major destinations for Indian companies.

"From energy resources to farm products, from materials to machinery, and from electronics to information technology, Indian and Asean companies are forging new partnerships of trade and investment," the Prime Minister said.

Besides the FTA with Asean, India is also negotiating similar market-opening pacts with members of the grouping bilaterally. India has already implemented FTAs with Singapore and Malaysia and is negotiating with Indonesia and Thailand.