With formal negotiations over the Comprehensive Economic Cooperation Agreement (Ceca) between India and Indonesia expected to start from August, the government has roped in think-tanks NCTI and Icrier to do cost-benefit assessment of the proposed pact.
The Ceca would cover both goods and services as well as investments, with a view to bolstering the economic ties between the two countries, both fast-growing markets.
According to a commerce ministry official, while the National Centre for Trade Information (NCTI) will study the Comprehensive Economic Cooperation Agreement with Indonesia on goods sector, the Indian Council for Research on International Economic Relations (Icrier) will look at the services sector.
The proposed studies will help India?s negotiations by giving an idea about what Indian government should ask for its industry players and professionals under the proposed pact.
In order to promote investments and reduce tariffs on bilateral goods and services trade, both the sides have agreed to raise bilateral trade to $25 billion by 2015 from the existing $11.7 billion.
?Indonesia is a big market for Indian businessmen.
We will get a huge middle class there. It will be a win-win situation for us,? the official said.
India already has a free trade pact in goods with Association of Southeast Asian Nations (Asean) of which Indonesia is a member.
Meanwhile, it is also in process to negotiate the free trade agreement in services and investment regime with Asean.