New Delhi: Singapore on April 8 said Free Trade Agreement (FTA) with New Delhi could be sealed in one year and both sides should be prepared to make "difficult trade- offs", a move, which will give tremendous boost to trade between the two nations.

"The negotiations (for FTA) may be difficult. But if both sides show goodwill and are prepared to make difficult trade-offs, the target (of 12 to 18 months) can be met," the visiting Singapore Prime Minister Goh Chok Tong said in New Delhi.

Addressing industry captains at a joint Confederation of Indian Industry (CII)-FICCI (Federation of Indian Chambers of Commerce and Industry) meeting, Tong said the proposed Comprehensive Economic Cooperation Agreement (CECA) will not only boost existing strong ties between both nations but also deepen New Delhi's relations with South East Asia.

"Strategically, it will facilitate India's integration with ASEAN (Association of South East Asian Nations). Economically, the CECA is the first step towards greater integration of Indian and ASEAN markets and will catalyse a successful conclusion of the ASEAN-India FTA," he said adding that the agreement should not be seen as only an economic initiative but also as a strategic exercise.

Stating that the blueprint for India and Singapore Economic Partnership included an FTA, investment promotion, open skies for charter flights and an enhanced double taxation avoidance agreement as prepared by the joint group, he said the agreement was significant as "it demonstrates the commitment of Indian government to liberalisation and regional economic integration".

PTI