India's PM Manmohan Singh will sign Free Trade Agreement (FTA) with ASEAN (Association of South East Asian Nations) at the East Asia Summit in Bangkok in December this year. The agreement will ensure lowering down of duties and free flow of trade in goods. India's economic diplomats consider the FTA with ASEAN would boost trade, political contacts, social and cultural linkages, connectivity and military ties. 

India has just concluded negotiations with ASEAN. Under the pact India and ASEAN will bring down the duty to zero on 71% of products by December 31, 2012 and another 9% by 2015. Duties on another 8% to 10% of the products will also be brought down to 5%. However, there is provision to exclude certain products and certain class of products from the tariff regime looking on to sensitivities and national trade interests. 

India's Trade and Commerce Minister Kamal Nath said that the agreement took six year,s has come into conclusion. He considers it a key milestone for the development and security of the region. Both the parties would negotiate trade in services and investment as a single undertaking as soon as possible. This Indo-ASEAN trade block will comprise of Thailand, Indonesia, Malaysia, Myanmar, Vietnam, the Philippines and Indonesia.