By IANS
New Delhi : India and Thailand Tuesday signed two agreements in the areas of energy and culture and sought to wrap up negotiations for a landmark free trade agreement (FTA) deal later this year.
The FTA covering trade in goods is expected to be operational by 2010.
"They expressed confidence that negotiations on the Free Trade Agreement (FTA) would conclude at the earliest during the current year," said a joint statement after Prime Minister Manmohan Singh and his Thai counterpart Surayud Chulanont held talks on a wide range of bilateral, regional and global issues.
Both sides also expressed confidence that the target of $4 billion bilateral trade volume by the end of 2007 was achievable, said the statement.
Two memorandums of understanding on enhanced cooperation in the field of renewable energy and cultural cooperation were signed in the presence of the two leaders.
Earlier, while speaking to top business leaders of India Surayud, a former army chief, sought to allay apprehensions of investors after a military-led government took over power in a coup last September.
He stressed that the Thai economy was growing at a rate of over 4 percent and full democracy would be restored after elections, to be held before the yearend.
"Our two countries are on track to conclude an FTA in near future, with a view to establishing the FTA covering trade in goods by 2010," he said in his keynote address at a business summit, organised by three apex business bodies of India, at Hotel Taj Mahal here.
Commerce Minister Kamal Nath stressed on diversifying trade between the two countries and called for an FTA that covers not just goods but also services and investments.
Painting a buoyant picture of steadily burgeoning business ties, the Thai leader announced the launching of a weeklong India-Thailand FTA roadshow from June 28 to July 4.
Thailand's Deputy Foreign Minister Sawanit Kongsiri will lead a prominent group of investors on the roadshow to important Indian cities to explore business opportunities that will come into play after the FTA comes into effect, Surayud said.
Surayud arrived here Monday evening on a three-day visit that also takes him to Kolkata as well as historical places like Varanasi and Sarnath.
The two countries also agreed to intensify their security cooperation and resolved to strengthen bilateral cooperation to combat terrorism and to coordinate measures in a comprehensive and sustained manner, said the joint statement.
Calling India "Thailand's new major market and a key engine of the rising Asian economy", Surayud underlined the importance of the proposed FTA and said that since the elimination of tariffs on 82 items under the early harvest scheme of limited FTA in 2004, bilateral trade jumped to $3.4 billion last year.
He sought more Indian investment in IT and pharmaceuticals – the two areas in which India has proven expertise.