The Prime Minister's Office wants a committee to be set up which will speed up clearance to Singapore's economic zone.
It has also directed the external affairs and commerce ministries to work out ways to get Pakistan to implement provisions of the South Asia Free Trade Agreement.
The PMO wants the economic zone issue sorted out quickly as Singapore is keen on increasing investments in India. Also, working out the Safta issue with Pakistan would increase trade with the country and possibly lead to better relations.
Senior government officials said the non-implementation of Safta provisions was discussed by the Prime Minister's Trade and Economic Relations Committee earlier this month.
The secretaries of the ministries concerned are expected to take a call on withholding tariff concessions under Safta to Pakistan.
The commerce ministry, which made a detailed presentation to the TERC, had come up with four options which include keeping the trade liberalisation programme in abeyance towards Pakistan and withholding the next phase of concessions due by December 2006.
The commerce ministry has sought legal opinion, which is believed to have been in favour of withholding tariff concessions. It has not favoured approaching the dispute settlement under Saarc since the modalities for the concerned body have not yet been finalised.
Singapore has offered to set up an economic zone in India, which would include a special economic zone and an industrial area. New Delhi has asked Singapore to finalise the state it wants to set up the zone in and identify a local partner.
"While Singapore has indicated that the investment will come through Ascendas ( a provider of business space solutions), we have asked them whether they want to work out of an existing SEZ or partner an Indian company to set up a new zone," an official said.