NEW DELHI, 10 July 2004 — In the first visit by a foreign head of government for India’s new UPA rulers, Singaporean Prime Minister Goh Chok Tong said yesterday India should “look east.” Goh arrived here on a three-day trip on Thursday night.

“It is more important for India to look east in political and strategic terms and increase economic relations with Singapore and ASEAN,” Goh told reporters after a ceremonial welcome by Prime Minister Manmohan Singh, External Affairs Minister Natwar Singh, Home Minister Shivraj Patil and Minister of State for External Affairs E. Ahamed.

Goh said Singapore was keen to increase investment in India and he was looking forward to “productive exchanges... The discussions will focus on how to engage India with Singapore, ASEAN and East Asia.”

This is Goh’s fifth visit to India.

Manmohan said while negotiations for a free trade agreement with Singapore were in their final stages there was no rush to conclude the deal. “This is a new government. We will look at all the options. Before we rush into new arrangements, we will have to have a broad consensus,” he said.

Goh agreed India need not “rush into” a decision. Singapore is India’s largest ASEAN trade partner, with bilateral trade amounting to some $2.9 billion as well as the largest investor from ASEAN.

There are 1,500 Indian companies in Singapore, with some 150 new ones setting up shop every year, Singapore Minister of State for Trade and Industry Raymond Lim said in Singapore yesterday. With their numbers rising by some 10 percent a year, Indians are now the fourth largest commercial community in the city state.

Prime Minister Goh’s agenda includes calling on the president and vice-president, a personal meeting as well as delegation-level talks with the prime minister, and meetings with Congress leader and UPA Chairman Sonia Gandhi, Natwar Singh and other leaders, including former Prime Minister Atal Behari Vajpayee and opposition leader L.K. Advani.

Today, Goh will attend a luncheon hosted by the CII Core Group and a tea reception by FICCI.