The Hindu Business Line : India may sign broad pact with ASEAN

INDIA will sign the Comprehensive Economic Cooperation Agreement with ASEAN this year as the pending issues are in the process of being ironed out, the Finance Minister, Mr P. Chidambaram said at a session with Asian leaders and the ADB President, Mr H. Kuroda, here at the World Economic Forum.

"We need a common economic community in East Asia. The core will be ASEAN. A formal proposal has been put forward by our Prime Minister," Mr Chidambaram said. India has proposed an ASEAN plus-four engagement, involving Japan, China, Korea and India, he said.

India had signed the framework agreement with ASEAN in 2003, though there were some outstanding issues to be resolved.

Mr Chidambaram said a trade agreement with China in the future was also conceivable as the two countries were increasing their economic engagement.

He said the Asian Monetary Fund and the Asian bond market initiative were also being considered.

He spoke of the need of a pan Asian market and said that in recent years Japan and the US have wanted to expand their investment basket and India could be a beneficiary. India has already signed and ratified the South Asian Free Trade Agreement and signed a Comprehensive Economic Cooperation Agreement with Singapore, he said.