Giving a further thrust to its Look East policy, New Delhi will soon engage Indonesia and Thailand into negotiations to enter into comprehensive trade agreements, like the ones it has with Japan, Malaysia and South Korea, sources said on Thursday.
Even as Prime Minister Manmohan Singh arrived in Hanoi from Kuala Lumpur on the third-leg of his three-nation tour covering Japan, Malaysia and Vietnam, sources said that India is moving its internal processes to have a comprehensive dialogue with Indonesia and Thailand on economic pacts.
The prime minister is in Hanoi to attend the 8th ASEAN-India Summit and the 5th East Asia Summit.
Meanwhile, sources also said that Indonesian President Susilo Bambang Yudhoyono will be the chief guest at the 2011 Republic Day celebrations on January 26 in New Delhi.
Even as India looks to connect more aggressively with the South East Asian region economically, culturally and politically, there are rumblings in Beijing which recently said that India's Look East policy is an excuse to 'encircle China'.
India recently concluded its negotiations with Japan for a Comprehensive Economic Partnership Agreement and with Malaysia for a Comprehensive Economic Cooperative Agreement, which will see newer markets open up on the goods, services and investment fronts.
The two agreements will usher in a new era of cooperation and broad-basing of economic relationship between India and the other South East Asian economies.
The move is a positive development in the fields ranging from trade in goods and services, investment, free movement of people, intellectual property, competition, improvement of the business environment, et cetera.
The move also affirms India's determination to continue working for the further expansion and strengthening of the economic partnership with S-E Asian nations.
The trade agreements are also expected to foster new business opportunities, enhance competitiveness of the private sectors of India and other Asian countries, and encourage closer partnership between those private sectors, from SMEs to infrastructure-related enterprises.
This will bring about increased prosperity and stability for both the countries and contribute to the peace and prosperity of the Asian region.
India entered into a Comprehensive Economic Cooperative Agreement with South Korea in 2009. India also has a free trade agreement with ASEAN.
The goods FTA will bring tariffs down to zero by 2016 for thousands of products. India is currently negotiating with ASEAN for a comprehensive economic agreement to include services, investment, movement of naturalised persons, and easier visa regimes.
India reiterated its commitment towards the Asean + 6 regional integration initiative of Comprehensive Economic Partnership in East Asia.
The 16-country block includes the 10 Asean nations, along with Japan, China, South Korea, India, New Zealand and Australia.
