The India-Singapore Comprehensive Economic Cooperation Agreement (CECA) would require some amendments, particularly in the area of mutual recognition of professional qualification in order to make it relevant to the present business relations between the two countries.
The India-Singapore CECA came into existence in August 2005 to facilitate trade and investment between the two countries, said Mr R Narayanamohan, chairman, board of directors, Singapore Indian Chamber of Commerce and Industry.
“There have not been many changes in the agreement over the last six years. So both the countries are in talks to bring certain amendments to the agreement (CECA),” Mr Narayanamohan told newspersons on the sidelines of the “India-Singapore: Exploring Business Synergies” event organised by the Confederation of Indian Industry here on Tuesday.
These amendments, which are likely to come into force “shortly”, will help ensure easy flow of business, he said.
The bilateral trade between India and Singapore under the CECA was close to Singapore $30.5 billion (approximately Rs 1.24 lakh crore at current exchange rate) in 2010. Though the official figures for 2011 were yet to be out, Mr Narayanamohan said, that the bilateral trade could stand roughly at about Singapore $30-35 billion (approximately Rs 1.2-1.4 lakh crore at current exchange rate) in 2011.
“The trade between the two countries has been growing very well. However, the currency devaluation which took place in the latter half of 2011 might have had some impact on the growth figures,” he pointed out.