The Hindu Business Line : Chambers call for early trade pact with Singapore

STRONGLY urging India and Singapore to "proceed towards signing" of the proposed comprehensive economic cooperation agreement (CECA), the participants at an `Asia Pacific business summit', held here as `India Calling 2004', have noted that "an early closure of the negotiations will send a positive signal" to the entrepreneurs in the entire region.

The two-day summit, which concluded on Saturday, was organised by the Singapore Indian Chamber of Commerce & Industry (SICCI) in association with the Mumbai-based Indian Merchants' Chamber (IMC).

As the first such event to be held outside India in this category of the IMC's activities, the summit attracted 520 participants, including foreigners, from across the Asia Pacific region.

Issuing a joint communiqué, the SICCI and the IMC underlined that "the CECA is widely expected to be the forerunner of closer economic integration in the region." It would, therefore, have an impact beyond "the mutual benefit of business in both countries''.

Deliberating on the latest Indian Budget, the conference lauded the move to raise the cap on foreign investments in the insurance and telecom sectors. Participants said they would "look forward to further liberalisation". The communiqué called upon India to "reduce import tariffs and quantitative restrictions as a way of encouraging the formation of joint ventures in food processing".

Also urged were the development of "storage and logistics as a means of reducing wastage in food chain" and the promotion of "regional commodity exchanges as a means of reducing the burden of crop price volatility on the farmers."

The two chambers said they would "encourage international companies to participate" in India's infrastructure and tourism-development sectors. Exploration of "ways of working together with Indian companies" in the biotech as also pharma and healthcare sectors would also be encouraged.

The conference appreciated India's move to form an investment commission and also New Delhi's "timely formalisation of the fiscal responsibility and management act". However, India was requested to reconsider its move to tax NRE deposits.

The two chambers agreed to "explore ways of promoting arbitration and mediation" for resolving commercial disputes. While SICCI was requested to assist the Indian companies interested in being listed on the Singapore Stock Exchange, it was suggested that the two chambers "consider setting up a mechanism" for a "continuous exchange of ideas to resolve problems and create business opportunities".

During a videoconference between the participants in Singapore and the Union Home Minister, Mr Shivraj Patil, in New Delhi, he allayed the lingering apprehensions among some foreign investors about the security climate in India and held out a parallel assurance that there would be no reversal of economic liberalisation.

The panellists in Singapore for the videoconference were IMC President, Mr Nanik Rupani, and IMC India Interest Group Chairman, Mr Suresh Kotak, besides SICCI Chairman, Mr M. Rajaram, and SICCI Vice-Chairman, Mr Vijay Iyengar.

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