Friday, July 22 2005 16:15 Hrs (IST) - World Time -

New Delhi: After Singapore, it will be Sri Lanka with whom India is going to ink a Comprehensive Economic Cooperation Agreement (CECA) early next year.

ASEAN (Association of Southeast Asian Nations) and Gulf Cooperation Council (GCC) are next in the list of nations with whom India would work toward CECA for increasing trade and investment, a senior Finance Ministry official told in New Delhi today (July 22, 2005).

"The next round of meeting between India and Sri Lanka on CECA is slated to take place in Colombo in August," he said. The treaty with Sri Lanka is unlikely to materialize before December this year but could be inked early next year, he said.

Sri Lanka stands to gain after the CECA with India as many of the Indian companies are keen to invest in the island nation. Banks and financial institutions are also keen to increase their toehold in Sri Lanka.

After Sri Lanka, India may head for the ASEAN for a CECA agreement. India already has a framework agreement for Free Trade with ASEAN and the next step may be to proceed towards a CECA.

India is also pushing for CECA with GCC comprising six nations, Saudi Arabia, Bahrain, Kuwait, Oman, Qatar and United Arab Emirates.

"It does not make sense for India to sign CECA with one particular Gulf nation. We are pushing for CECA with the GCC instead," the ministry official said.

A CECA with GCC would enable India to increase its trade and investment in all the six Gulf nations having 32.3 million in population and 390 billion dollar in GDP.