SINGAPORE: India and Singapore "will look at how to expand the scope and benefits of the CECA [Comprehensive Economic Cooperation Agreement]" that they had signed last year.

The upbeat indication, spelt out by Singapore's Trade and Industry Minister Lim Hng Kiang after the CECA review here on April 1, is expected to set the stage for discussions at the "Connecting India" summit on April 12 and 13.

The "Asia Pacific Business Summit" on this theme is being organised by the Singapore Indian Chamber of Commerce and Industry (SICCI) as an exclusive event under the "Celebrating India" project of the Indian High Commission here.

The Hindu and The Hindu Business Line are the media partners for SICCI summit, while Price Waterhouse Coopers is the organiser's knowledge partner.

Union Commerce Minister Kamal Nath, who met Mr. Lim for the CECA review that was carried out several months before the time fixed for this exercise, said, "We must put some more mass in this agreement." Mr. Lim said they had now "set timelines and directions" for exploring the feasibility of CECA expansion and taking this process "forward," preferably "before the one-year period is up by August."

As India's first comprehensive economic pact with any country, the CECA came into effect last August after it was signed over a month earlier.

Indicating that the CECA expansion would be considered over the next six weeks from now, Mr. Kamal Nath said the discussions would cover the inclusion of more tariff lines for trade in goods and some "amendments" of the existing provisions.

Ironing out glitches

Both Ministers said the review of the existing pact, not to be confused with the latest initiative to expand the accord itself, had revealed the need for "ironing out glitches" in several sectors. Asked whether the two countries differed over these, what these glitches were, Mr. Lim said: "We are in agreement on some of the difficulties faced by both sides and we have itemised these." Directions were laid out for the officials to remedy these difficulties.

Mr. Lim said a "very high priority" for both countries "is to ensure flow of investments from Singapore and through Singapore to India." Asked whether the proposed CECA expansion would specifically cover the possibility of a Singapore's proactive role by Singapore to promote a special economic zone in India, Mr. Kamal Nath said "a mindset change has to take place."

Some Singapore entities were already investing in India through the Mauritius route for tax gains. So, New Delhi was now "simulating some cases" to enhance the comfort level of Singapore players for making direct investments in India, Mr. Kamal Nath indicated.

On the issue of mutual recognition of each other's professionals in the services sector, the Commerce Minister said India was still on "a learning curve" in this field. Mr. Lim agreed that "some impetus" was needed for a forward movement by both sides. Mr. Kamal Nath said the issue, though, was "not a lack of intent" to make progress.

As for the banking sector, Mr. Lim said Singapore was now "going through the process of evaluating the applications" from Indian banks for qualified full licences in the city-state. The applicants should meet certain "prudential requirements," he emphasised.

Without wishing to pre-judge the latest initiatives by New Delhi and Singapore to expand reinvigorate the CECA, SICCI Chairman M. Rajaram said Singapore's investors from the City-State were now looking out for positive signs from the Indian side.

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