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India, Singapore move towards free trade pact

India and Singapore are moving towards achieving a Free Trade Agreement with comprehensive negotiations beginning in April next between the two nations.

''By April we will start negotiations'' Singapore Minister of Trade and Industry George Yeo said while addressing the members of the Federation of Indian Chambers of Commerce and Industry in New Delhi on Tuesday.

At the instance of Prime Minister Atal Bihari Vajpayee, a study group was set up as a first step towards signing the FTA. The group was followed by a task force which is likely to submit its report by March, 2003.

Yeo said while China could not be wished away, Singapore would like to expand its relations with India as well so that the island nation did not feel the discomfort of being reduced to a 'tributary' status to China.

Privatisation of four major airports in India is among the priority areas for Singapore. ''We are looking into the possible privatisation of the four airports in your country,'' the Singapore minister said.

Singapore has already made investments in the Indian port sector in a couple of states. Ironically, it is facing some problems in Tuticorin in Tamil Nadu. However, Singapore would like to invest in other states as well in the port sector.

Yeo said Singapore has proposed to India joint educational facilities in the island nation.

"I had placed this proposal before your Foreign Minister Yashwant Sinha when I met him yesterday,'' he said.

Under the proposal, India would pool in the worldwide prestige of its institutions like Indian Institute of Technology, and Indian Institute of Management and Singapore would add the world class facilities.

Andhra Pradesh Chief Minister N Chandrababu Naidu has also proposed setting up of a pharma park in his state with the help of Singapore. While Singapore is looking towards west in the immediate future, it would like to consider this proposition at a later stage, he said.

Yeo said India's future would be looking towards east. Twenty years from now, China's economy would be equal to that of US triggering growth in most of the economies of the South-East Asian economies.

Minister of State for Commerce and Industry Rajiv Pratap Rudy said India has taken a number of measures to foster the knowledge-based industry. Reforms are moving forward.

Laws and regulations based on convergence would support these initiatives. Similarly, in the area of pharmaceuticals, bio-technology, India provides vast skills and diversities to scale new horizons.

India, Rudy said, would provide a choice of the 'click' and 'brick' economy for Singapore.

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