The India-Singapore Comprehensive Economic Cooperation Agreement: An Appraisal of Progress

The Comprehensive Economic Cooperation Agreement (CECA) between India and Singapore came into effect on 1st August 2005. It was the first such comprehensive FTA signed by India with any country covering trade in goods, trade in services and investment. This study seeks to appraise the progress in the implementation of CECA at a time when the second review of the agreement which began in 2010 still remains inconclusive. The study maps out the trend in India’s bilateral merchandise exports which showed an upward climb in the initial years after CECA but which has in recent years declined. Sector and product level analysis brings out the competition at play from other trading nations. Since Singapore has zero MFN duties for practically all the goods, tariffs play no part in the competition. Significant efforts will be needed by Indian exporters to stabilise and strengthen export prospects in potential areas that have been outlined in the study. Promoting an environment that will help India to acquire a greater role in supply chain arrangements in the Asia Pacific region will also be important. Imports from Singapore into India are examined in the context of not only CECA duty concessions but also on account of the tariff reductions under India-ASEAN FTA of which Singapore is a signatory. Singapore’s re-export of products of third country origin have also been tracked to better understand their role. A rapidly growing India could see more imports in the future of products from certain industry segments where Singapore has developed considerable strengths and competitiveness