INTRODUCTION

MEANING OF INTERNATIONAL TRADE:

International trade is the exchange of goods and services between countries. This type of trade gives rise to a world economy, in which prices, or supply and demand, affect and are affected by global events. Political change in Asia, for example, could result in an increase in the cost of labor, thereby increasing the manufacturing costs for an American sneaker company based in Malaysia, which would then result in an increase in the price that you have to pay to buy the tennis shoes at your local mall. A decrease in the cost of labor, on the other hand, would result in you having to pay less for your new shoes. Trading globally gives consumers and countries the opportunity to be exposed to goods and services not available in their own countries. Almost every kind of product can be found on the international market: food, clothes, spare parts, oil, jewelry, wine, stocks, currencies and water. Services are also traded: tourism, banking, consulting and transportation. A product that is sold to the global market is an export, and a product that is bought from the global market is an import. Imports and exports are accounted for in a country's current account in the balance of payments.

INDIA INTERNATIONAL TRADE

India International Trade reflects the growing prominence of Indian economy in the global market, in turn leading to an International economic. The development of the International economic environment has helped the other developing countries as well, improving the entire global economy. The present liberal trading policies taken by the Indian government have facilitated the establishment of an international economic order setting up a symbiotic relation between the developed and developing countries. The liberal reforms launched so far have attracted many investors to participate in the India International Trade.

LOOK EAST POLICY:

India's Look East policy represents its efforts to cultivate extensive economic and strategic relations with the nations of Southeast Asia in order to bolster its standing as a regional power and a counterweight to the strategic influence of the People's Republic of China. Initiated in 1991, marked a strategic shift in Indias perspective of the world. It was developed and enacted during the government of Prime Minister P.V. Narasimha Rao and rigorously pursued by the successive administrations of Atal Bihari Vajpayee and Manmohan Singh. The focal point of the "Look East Policy" of India at that time was put in economic cooperation. Due to various reasons, India did not positively promote the "Look East Policy" at that time and the Southeast Asian countries had paid their attention to East

Asia and underestimated India. Subsequently, the "Look East Policy" did not exert obvious effects. India strengthened its association with the Southeast Asian countries, joined the treaties of the Association of Southeast Asian Nations, established free trade zone with the Southeast Asian countries and participated in the East Asian cooperative mechanisms and the security forum of the Association of Southeast Asian Nations. The cooperative contents also expend to the military and cultural fields from exclusive economic cooperation. Most of the leading players (especially the five founders: Indonesia, Malaysia, the Philippines, Singapore and Thailand) in the Association of South East Asian Nations (ASEAN) and the four tiger economies (Hong Kong, Singapore, South Korea and Taiwan) were seen to be in the American camp, so ties between India and its Asian neighbours were tepid. India believes that some of the ASEAN nations have been dragging their feet in implementing a full-fledged Comprehensive Economic Partnership Agreement (CEPA), which would cover both services and investment. Many countries in South East Asia are worried that if the services sector were to be opened up, Indian companies would try to dominate their domestic market. So India and Singapore signed a Comprehensive Economic Cooperation Agreement (CECA) on 29 June, 2005 to enhance trade and investment ties between them. The CECA comprises a free trade agreement on trade of goods and services, a bilateral agreement on investment promotion, protection and cooperation and an improved double taxation avoidance agreement. It also includes Mutual Recognition Agreements on quality certification of goods and services, liberalized visa rules for professionals, and undertakings to cooperate on several sectors like customs, dispute settlement, intellectual property rights, education and e-commerce. CECA was the first of its kind of trade agreement signed by India and has ushered in a new model for our future bilateral and regional economic alliances. It was also Singapores first comprehensive economic pact with a South Asian country. The idea for establishing a CECA between India and Singapore first came up formally in a meeting between then Prime Minister of Singapore Mr Goh Chok Tong and then Prime Minister of India Shri Atal Bihari Vajpayee in Singapore on 8 April, 2002. A Joint Study Group(JSG) was established to study the potential benefits of a CECA between the two countries. The JSG identified major areas of economic cooperation and recommended a broad outline for the comprehensive agreement. Following the completion of the JSG report, a Declaration of Intent was signed on 8 April, 2003 by BG (NS) George Yeo, then Minister for Trade and Industry, Singapore, and Shri Arun Jaitley, then Minister for Commerce and Industry, India. A month later, the relevant

ministries for the two governments began negotiations on the details of the agreement. After 13 rounds of formal negotiation, the two countries finally concluded the CECA. On 29 June 2005, Prime Minister of India Mr. Manmohan Singh and Prime Minister of Singapore H.E. Mr Lee Hsien Loong signed the agreement during the latters State Visit to India. The CECA has become operational with effect from 1 August, 2005. It is reviewed from time to time; the first round of review was concluded on 1st October, 2007, and the latest review was done recently in 2009 at the level of Secretaries. A Comprehensive Economic Cooperation Agreement should not be confused as being the same as a Free Trade Agreement. A FTA is an agreement in which the countries involved commit to reducing or eliminating tariffs (and other barriers) on a reciprocal basis on trade in goods.

The main aspects of the agreement are

Free Trade Area in trade of goods Services Investment Double Taxation Avoidance Agreement Others- movement of natural persons, education, tourism, intellectual property rights, etc.

REVIEW OF LITERATURE
I have gone through different national and international researches the extract of few is given below:

NATIONAL REVIEWS
[Link] Anand & [Link](2005),INDIAS TRADE -Pondicherry University. INTERNATIONAL

This study discusses about the international trade business of India with their neighboring countries in future. The researcher discusses that Before the Liberalization the Indian economy is very poor compared with the other developed countries. Development of advance technology in science and technology there are drastic changes in the Indian economy producing the Agricultural products and Industrial products and bi-products and became self sufficient and competing with the developed and developing countries in the world like Agriculture green revolution, white revolution, Before the liberalization of the Indian economy our Balance of Payments (BOP) is very high there are no foreign reserves. With the Liberalization, privatization and Globalization of the economy and the government policies on exports and imports Many of the foreign countries which are members of the trading blocks like SAARC, WTO entered into India to do export and imports business trade with India, trade agreements with its neighbors and is seeking new ones with the East Asian countries and the United States, Preferential Trade Agreements with Afghanistan, Chile, and Mercosur. Exports in, 2010 are valued at Rs 485206.77 crores. Imports in, are valued at Rs 743338.09 crores. The trade deficit in 2010 is estimated at Rs 261017 crores. The total imports are 5188024 crores in the year 2009-10 and the exports are Rs 322424 crores in the year 2009-10. They focus the Indias international trade can be envisaged that India would do the better in the international trade business with their neighboring countries in future and develop the Indian economy. Dr. Kishor Bhanushali(2007),Recent Change in the Dimensions of India's Foreign Trade- Global Institute of Management Gandhinagar. In this research the researcher discuss the whole world has recognized India as super power of 21st century. India is youngest county in the world growing a rate of more than 8 percent. Large population of India provides market to the countries of the world.

At the same time it provides opportunities to India in terms of extracting the potentials of its manpower and other resources to emerge as real super power. India's foreign trade should also reflect her potentials to emerge as a super power. This paper aims at analysing the recent changes in the pattern of foreign trade. Information on various dimensions on India's foreign trades like imports, exports, balance of payment, composition of trade by commodities and countries, etc are collected and analyzed to find out trend and pattern and its impact on future. India's trading relations with singapore are also analyzed. Ganeshan Wignaraja(2008), Economic Implications Integration- Asian Development Bank. of Deeper Asian

The researcher discuss the Asian countries are once again focused on options for large, comprehensive regional integration schemes. In this paper we explore the implications of such broad-based regional trade initiatives in Asia, highlighting the bridging of the East and South Asian economies. We place emphasis on the alternative prospects for insider and outsider countries. We work with a global general equilibrium model of the world economy, benchmarked to a projected 2017 sets of trade and production patterns. We also work with gravity-model based estimates of trade costs linked to infrastructure, and of barriers to trade in services. Taking these estimates, along with tariffs, into our CGE model, we examine regionally narrow and broad agreements, all centered on extending the reach of ASEAN to include free trade agreements with combinations of the northeast Asian economies (PRC, Japan, Korea) and also the South Asian economies. They focus on a stylized FTA that includes goods, services, and some aspects of trade cost reduction through trade facilitation and related infrastructure improvements. What matters most for East Asia is that China, Japan, and Korea be brought into any scheme for deeper regional integration. Aman Agarwal(2008),Proposal for the Possible Establishment of an ASEAN Dollar- IIF Business School (IIFBS). In this research the researcher discuss the current optimal strategy for ASEAN countries is to assess whether the necessary environments exist for the establishment of a wellintegrated common financial market for the ASEAN area, and consequently support for a single currency. The currency is for discussion purposes termed the ASEAN Dollar. In this paper the researcher focus on a practical application, involving two components: 1) The six convergence criteria that we propose each ASEAN country should meet in

order to become eligible for the ASEAN Dollar; and 2) Establishment of the ASEAN Economic and Currency Community (AECC).

Thongkholal Haokip(2010),India's Look East Policy: Prospects and Challanges for Northeast India- Presidency University. Res earcher talk about the potential of Indias Look East policy in transforming the region. The inclusion of northeast as an important component of this policy in 2003 is dubbed as the new paradigm of development in the northeast development perspective. The policy envisages the region not as the periphery of India, but as the centre of a thriving and integrated economic space. Thus, many people see it as an excellent opportunity to integrate not only with Indian mainland economy but also with Indias neighbouring countries and even beyond. In contrast, others view this policy as an extension of Indias new imperialism in a new form in that the northeastern will only provide a bridge between the rest of India and Southeast Asia The main argument of the critiques in this paper is that India is more concerned with the East but not to Indias Northeast. The present paper therefore attempts to analyse the prospects and challenges of Indias Look East policy in the context of Northeast India.

Thongkholal Haokip(2011),India's Look East Policy- Presidency University. The researcher discuss as Prime Minister Manmohan Singh said, "The Look East policy is not merely an external economic policy; it is also a strategic shift in Indias vision of the world and Indias place in the evolving global economy."The Look East policy has emerged as an important foreign policy initiative of India in the post-Cold War period. The essential philosophy of the Look East policy is that India must find its destiny by linking itself more and more with its Asian partners and the rest of the world, and that Indias future and economic interests are best served by greater integration with East and Southeast Asia. They suggest that the Look East policy is an attempt to forge closer and deeper economic integration with its eastern neighbours as a part of the new realpolitik in evidence in Indias foreign policy, and the engagement with Association of South East Asian Nations (ASEAN) is the recognition on the part of Indias elite of the strategic and economic importance of the region to the countrys national interests

INTERNATIONAL REVIEWS
Eisuke Sakakibara &Sharon Yamakawa(2003),Regional Integration in East Asia: Challenges and Opportunities- Keio University. This examination includes a review of the lingering effects of the 1997-98 Asian crisis, the expanding role of China in the region, the prolonged slump in Japan's economy, and the evolution of regional institutions such as the Asia-Pacific Economic cooperation and the Association of Southeast Asian Nations, among others. The authors focus on trade, direct investment, and the financial and monetary aspects of regional cooperation. In their analysis, they compare other regions, particularly the European Union and the North American Free Trade Agreement. Finally, the authors suggest cooperative steps the region might take over the next decade to promote the growth and stability of its member economies. In this regard, they look at the future role of regional institutions, the prospects for a regional role in promoting trade and foreign direct investment, and the possibilities for financial and monetary cooperation. Sakakibara and Yamakawa examine the motivating factors and underlying dynamics of the progression toward closer cooperation in the region beginning from a historical perspective, which sets the stage for an evaluation of the form that regional cooperation might take so as not to sacrifice the benefits of the region's already achieved openness. They examine in this paper - a product of the Poverty Reduction and Economic Management Sector Unit, East Asia and Pacific Region - is part of a larger effort in the region to analyze integration through trade. Paul Bowles & Brian MacLean(2008),Understanding trade bloc formation: The case of the ASEAN free trade area- article. In this article, they examine why such a change in policy came about In so doing, they conclude that mainstream economic approaches do not provide satisfactory explanations for the formation of AFTA. In large measure this is due, they argue, to an overly simplistic explanation of, or disregard for, state behaviour and/or an a historical approach which fails to consider the purpose of trading blocs in the global economy of the 1990s. The formation of the ASEAN Free Trade Area (AFTA) in 1991 marks a significant change in attitudes towards preferential trading arrangements in the region. They provide an alternative explanation for the formation of ASEAN which points to the need for an explicit analysis of the political economy of ASEAN states and ASEAN's relationship to the global economy.

Hui-Boon Tan &Chen-Chen Yong(2008),Regional Economic Integration & Trade Flows: The Experience of Asean-5 and Japan-The University of Nottingham Malaysia Campus. This study determines the effect of regional economic integration, namely the ASEAN Free Trade Area, on bilateral trade flows between the ASEAN-5 countries and their major trading partner, Japan. The analysis begins with the construction of a simple country-specific index based on the Common Effective Preferential Tariff (CEPT) scheme of AFTA to measure the progress of economic integration of each ASEAN-5 country. The index is then used to determine the effect of this economic integration on bilateral trade flows between the individual ASEAN-5 country and Japan. The Philippines and Malaysia are the two most benefited countries, in terms of trade flows to Japan, from the regional economic integration of AFTA. The results also show that the other three countries, namely Indonesia, Singapore and Thailand, have gained in trade flows to Japan due to the Japanese foreign Investments in the countries. The empirical results of this study based on the Autoregressive Distributed Lag (ARDL) approach show that there is a significant trade creation between ASEAN-5 and Japan after the implementation of the regional free-trade area. Jun Xiao(2010),The ASEAN-China Investment Agreement: A Regionalization of Chinese New BITs- Wuhan University Institute of International Law. In this paper researcher analyzes the provisions of the new agreement, especially those on the scope of application, national treatment, MFN treatment, expropriation, and investor-state dispute resolution. Then, the paper compares the new agreement with other international investment agreements concluded by China or ASEAN. In comparison with the existing BITs between China and individual ASEAN member states, there are significant changes in the Investment Agreement which provides higher standard of investment protection. In this respect, the Investment Agreement is new wine in a new bottle. Nevertheless, such a standard of investment protection is common in the BITs signed by China since 2000 which constitute a new generation of Chinese BITs. This paper concludes that the Investment Agreement represents old wine in the new bottle. China is not prepared to undertake investment liberalization obligations in its FTAs, negotiating an investment agreement in Chinas FTA arrangements has been regarded as an opportunity to update its old BITs. The ASEAN-China Investment Agreement is rather a regionalization of Chinese BITs and an example of Chinas influence on rule-making on regional level.

Miaojie Yu(2011),Patterns of Trade, Comparative Advantage and Productivity in the ASEAN-China-India Region- Peking University China. In this paper the researcher first investigates the pattern of trade and industrial productivity in the ASEAN, China, and India (ACI). By using highly disaggregated COMTRADE data during 1998-2008, they find that the ACI countries exhibit significant productivity growth in manufacturing sectors. Both international trade and intra-region trade in the ACI countries increase dramatically in the last decade. The imports from India to China are mostly ordinary trade whereas those from ASEAN to China are mostly processing trade. A further intensive empirical research shows that an exporter in the ACI region with higher productivity would export more to the rest of the world. Moreover, a more capital-abundant exporter in the ACI region would export more capitalintensive products to the rest of the world. Finally, policy suggestions for each ACI country are delivered based on the calculated revealed comparative advantage (RCA) index by industry and by year. Yun Ling Zhang & Minghui Shen(2011),The Status of East Asian Free Trade Agreements- Chinese Academy of Social Science (CASS). The researcher dscuss that free trade agreements (FTAs) have become a prominent feature of the multilateral trading system and an important instrument of trade policy for members of the World Trade Organization (WTO). The proliferation of FTAs is the result of a number of factors, from the economic to the political. East Asia is with no exception involved in the process and witnessing the establishment of multilayered FTAs. Pioneered by the Association of Southeast Asian Nations (ASEAN) in 1992 when it initiated the ASEAN FTA (AFTA), and encouraged by ASEAN 1 (ASEAN plus one country) FTAs, more and more economies in east Asia are involved in FTAs, although the characteristics of these FTAs differ according to their background and circumstances. When the proliferation of FTAs in east Asia benefits the regional trade and economic growth, questions have been raised about Asian noodle bowl effect, pointing out multi-layered FTAs in east Asia have created new trade barriers and raised the cost of business in the region. To this end, they suggest that east Asia needs to progress from the proliferation of multilayered FTAs to a region-wide FTA with wider participation and broader coverage.

NEED OF THE STUDY

Singapore is Indias largest trading and investment partner in association of Southeast Asian nation (ASEAN). India was Singapores 13th largest trade partner in 2005 and has improved to be 9th largest in 2012, particularly after the conclusion of the Comprehensive Economic Cooperation Agreement (CECA) in 2005. Now, Singapore is emerging as the key offshore hub for the Indian corporate house. But as we know India has large geographical area and also has a very big market for trade than Singapore despite of this Indias total import more than the total export from Singapore. So for this reason I have decided and chose this topic with the aim of understanding and examine the impact of Comprehensive Economic Cooperation Agreement (CECA) from Indian viewpoint. It has led to an increase in trade beneficial for Indias future trade pact or not. This study is also aimed at to identifying the areas that needed for future Comprehensive Economic Cooperation Agreement (CECA) negotiation and implementation for achieving the goal of cross-border economic engagement, economic integration and seamless trade between countries.

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OBJECTIVES OT THE STUDY

To identify various components of Comprehensive Economic Cooperation Agreement (CECA). To analyses the general pattern of trade between India and Singapore. To analyses trade before and after CECA. To suggest measure to improve trade between India and Singapore.

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RESEARCH DESIGN AND METHODOLOGY

To accomplish the objectives of the study, the following methodology will be used:-

Hypothesis:Ho = CECA has no significant impact on trade between India and Singapore.

Scope of the study: - India and Singapore. Duration of the study: - 8 years before and after 2005. Source of data: -This study will be based on secondary data collect from:
Websites Journals

Basic parameters of the study: - Major commodities exportimport between

India and Singapore.

Research design: -For the purpose of this study analytical research design will be
used.

Data analysis tools:Objectives 1. 2. 3. Tools Content analysis Linear regression T-test

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Data presentation tools: Graph Bar diagram Pie-chart

PROPOSED PLAN OF THE STUDY:

CHAPTER-1 CHAPTER-2 CHAPTER-3 CHAPTER-4 CHAPTER-5 CHAPTER-6 Introduction Review of Literature Data collection Data Analysis and Interpretation Testing of hypothesis and Findings Conclusion and Suggestions

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REFERENCES
Anand Byram and [Link],India s International trade,karaikal camps, Pondicherry,2005. Bhanushali Kishor,Recent Change in the Dimensions of India's Foreign Trade,Global Institute of Management Gandhinagar 2007. Wignaraja Ganeshan, Economic Implications of Deeper Asian Integration, Asian Development Bank, CERP discussion paper No.DP6976, September, 2008. Agarwal Aman, Proposal for the Possible Establishment of an ASEAN Dollar- IIF Business School (IIFBS),2008. Haokip Thongkholal, India's Look East Policy: Prospects and Challanges for Northeast India, Presidency University, march 27,2010. Haokip Thongkholal, India's Look East Policy,vol.25,No.291,PP.7-11, Presidency University, may 1,2011. Sakakibara Eisuke and Yamakawa Sharon, Regional Integration in East Asia: Challenges and Opportunities, World Bank Policy, Research Working Paper NO.3078, Keio University-Global Security research center, June 5, 2003. Bowles Paul and MacLean Brian, Understanding trade bloc formation: The case of the ASEAN free trade area, Article. Pages 319-348, January 09,2008. Hui-Boon Tan and Yong Chen-Chen, Regional Economic Integration & Trade Flows: The Experience of Asean-5 and Japan, Research Paper No.08-07, University of Nottingham Malaysia Campus, August 5,2008.

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Xiao Jun, The ASEAN-China Investment Agreement: A Regionalization of Chinese New BITs, Wuhan University Institute of International Law, University of Barcelona, June 23,2010. Yu Miaojie, Patterns of Trade, Comparative Advantage and Productivity in the ASEAN-China-India Region, Peking University-China Center for Economic Research (CCER), May 28, 2011. Zhang Yun Ling and Shen Minghui, he Status of East Asian Free Trade Agreements,ADBI Working Paper 282, Chinese Academy of Social Science-Institute of Asia Pacific studies, May 17,2011.

WEBSITES
[Link] [Link] [Link] [Link] [Link]/indian-focus-on-look-east-policy [Link]/indias-international-trade

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