The proposed comprehensive economic co-operation agreement between India and Singapore to create a bilateral, free-trade agreement on services will benefit Indian professionals, according to a study by the Indian Council for Research on International Economic Relations.

The agreement will be finalised during Singapore Prime Minister Goh Chok Tong's ongoing three-day visit to New Delhi.

The agreement is modelled on the lines of free trade agreements for merchandise and is aimed at opening up the services trade and other trade facilitation measures.

According to the study, Singapore needs trained professionals and will benefit from an influx of Indian workers in sectors like software, health and education, director and chief executive of the council, Arvind Virmani, said.

The two countries could sign mutual recognition agreements in select service sectors to remove qualification-related entry barriers.

Other barriers, such as stringent conditions for employment passes in Singapore, could also be discussed under the agreement, Virmani added.

The study said India could gain expertise from Singapore in areas like investment, technical know-how and management of infrastructure services, such as telecommunications and transport.

"Current barriers to investment, like the foreign direct investment restriction, multiple clearance procedures and other regulatory barriers can be addressed through this agreement," it added.

The study also identified complementary sectors like software and hardware, which could be exploited by both countries to gain greater access to third country markets.

India's software expertise could be combined with Singapore's capabilities in hardware to create a combined brand identity, it pointed out.

Similarly, while Singapore was an important market for Indian audio-visual products, India could can gain through modern technical knowledge from Singapore, it added.

Tourism being another sector in which India's share was declining, the country could can gain through multi-country packages linking major tourist destinations, and by measures like investing in tourist infrastructure.

"Given Singapore's locational advantage and its close links with countries in South East Asia, India can use Singapore as a gateway to access these markets in sectors like tourism and software," the study said.

It also identified domestic and external barriers to trade and recommended measures for removal or reduction of such barriers through the agreement.

The study recommended that the framework of the agreement be consistent with the World Trade Organisation  framework, as both India and Singapore were committed to the multilateral trading system under the WTO, but liberalisation measures undertaken bilaterally should be much beyond what the countries are willing to commit in the multilateral forum.