India and the bloc of 10 Southeast Asian nations on Wednesday exuded confidence that their bilateral free trade agreement (FTA), presently limited to merchandise, will be enlarged to cover services and investment sectors by 2011-end.

The two sides are engaged in hectic negotiations to expand the ambit of FTA in goods, which was already operationalised from January last year, to include trade in services and investments, a key area of interest for India.

“We are in an advanced stage of concluding negotiations (for free trade agreement) in services and investments,” the Commerce and Industry Minister, Mr Anand Sharma told reporters here in the presence of trade ministers of ASEAN.

Trade Ministers of Association of South East Asian Nations (ASEAN) are here to attend the India-Asean Business Fair and Conclave. Ficci is the lead coordinator of the event.

Malaysian International Trade and Industry Minister Dato Seri Mustapa Mohamed said further progress is expected when negotiators would meet later this month in Brunei Darussalam.

Regarding concerns on including services, Mohamed said: “On the movement of natural persons, there are some concerns within the Asean countries that whether this might have an impact on our own people and professionals in the Asean region.” However, he added the relationship is not complete without conclusion of the agreement in services and investments. Movement of natural persons means professionals would be able to move more easily between India and Asean, once the pact comes into operation.

Philippines Department of Trade and Industry (DTI) Secretary Gregoryl Domingo too said they have some constitutional constraints regarding services agreement, but hoped negotiators would find a way out for this.

India-Asean trade now stands at $50.33 billion. Both the sides aimed to touch $70 billion by 2012.

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