Singapore for FTA between India and China

New Delhi, Jan 7: Singapore today favoured an India-China Free Trade Agreement as it would transform the world and have closer engagement with the United States and Japan as an integral part of the East Asian equation.

''An India- China Free Trade Agreement may still be many years in the future, but it is a bold vision worth striving for and, if achieved, it will transform the world,'' Singapore Deputy Prime Minister Jayakumar said at the inaugural session of fifth Pravasi Bharatiya Divas here.

Mr Jayakumar was the Chief Guest at the function, inaugurated by Prime Minister Manmohan Singh.

The leader lauded India's growth performance, saying he was convinced the India's future will be increasingly bound with that of East Asia.

Mr Jayakumar made out a case for closer relations between India and the United States as being important for the future of East Asia.

''For many more decades to come there is no doubt that the US will continue to play an important role in East Asia's stability and growth. The US must therefore be persuaded not to oppose the construction of a new East Asia even if it may not participate in each and every aspect of the emerging architecture. Close US- India relations and an East Asian framework with an India that enjoys close relationship with key US allies firmly embedded in it will give comfort to the US'', he said.

The annual event is a platform to strengthen the role played by NRI's and PIO's in the country's growth process. Over 1,200 NRI delegates, from more than 50 countries, are participating in the three-day gala affair, being held at the sprawling Vigyan Bhavan.

Mr Jayakumar noted that a new strategic relationship was being forged between India and the US, based on deepening economic economic engagement, closer defence relations and, in time to come, nuclear co-operation.

Referring to Indian Prime Minister's conceptualisation of a Pan Asian Free Trade Agreement as a building block for the eventual Asian Economic Community, Mr Jayakumar spoke eloquently about the strategic partnership between India and Japan and the proposed Comprehensive Economic Partnership Agreement with South Korea.

He said India's ability to play a key role in the comity of nations will be depend on the sustainability of India's growth and evolving a national consensus to push through reforms in key areas.

In this regard he quoted Dr Manmohan Singh as having said that while India is certainly on the march, it ''still has miles to go before it makes its tryst with destiny''.

''The construction of a new East Asia is essentially an effort to transform a group of countries separated by inward looking policies into an open and integrated market. If a new East Asia is to become a reality, each member country must reform its domestic economic and political institutions in ways that will make its economy and society more free and open'', Mr Jayakumar said.

He also argued for greater involvement of the NRI's in India's development effort.

UNI