CECA will anchor India’s position in South East Asia. It will ensure that India joints in the opportunities that South East Asia offers, just as companies from the US, Japan and China are already doing, said Singapore Deputy Prime Minister Lee Hsien Loong.

Speaking at ‘Standard Chartered Bank’s Singapore Conference’ in Mumbai on ‘Connecting India and Singapore’, Mr Loong said that both countries are already negotiating on a Comprehensive Economic Cooperation Agreement or CECA which will act as a firm basis for expanding the relationship.

“The rewards are not only economic, but also strategic”, pointed out Mr Loong. While Singapore gains freer entry into the Indian market, it will also make the city-state less dependent on one or two major trading partners.

The gain for India from CECA is the strategic position that Singapore offers. It will anchor India’s position in south-East Asia. Like in the case of the US-Singapore FTA and with the Japan-Singapore Economic Cooperation Agreement.

“After Singapore made these two agreements, other Asean countries started to pursue similar arrangements with the US and Japan. Singapore is happy at this, as we will benefit when our neighbours too are promoting freer trade and investment flows”, observed Mr Loong. It was pointed out that over 1,000 Indian firms already in Singapore, and in the last three years along, over 150 have set up shop.

The ‘India Shining’ story was also mentioned by Mr Loong. “The biggest stories in Asia are China and India. It has been projected that China’s GDP could overtake Germany in the next four years, Japan by 2015 and the US by 2039. India too is opening up and growing strongly, and could become the third largest economy in the world within 30 years,” he said.

On India’s domestic political developments, he noted that the BJP’s victory in the state elections is reflective of the people reaffirming their support for reforms. “The current thaw in relations with Pakistan is another positive sign,” he added.

Standard Chartered Bank managing Director for corporate finance & advisory V Anantharaman, in his presentation at the interactive session said Singapore’s strategic location in the middle of an Asian market of 2.8 billion people makes it an attractive country for doing business, adding that Singapore has extensive trade links and free trade agreements with several countries around the world. “It is opportune for companies in India to take advantage of the rebound in the regional economy and invest in Singapore,” Mr Anantharaman said.

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