India plans to negotiate free trade and investment pact with South Korea

India plans to negotiate a free trade and investment pact with South Korea similar to the agreement it recently signed with Singapore, an official said Tuesday.

Prime Minister Manmohan Singh decided to propose the free trade and investment pact with South Korea after meeting Monday with his trade and economic advisers, said an official at Singh's office.

The proposal would cover free trade in goods and services and preferential treatment for Indian investments in South Korea and vice versa, the official said on condition of anonymity because he was not authorized to speak to reporters.

It would be similar to what India and Singapore signed earlier this year, he said.

In Seoul, an official at South Korea's Ministry of Foreign Affairs and Trade said officials from both countries are studying the feasibility and economic effects of such as agreement. The sides have held three meetings on the subject since January, said the official, who did not want to be named because he was not authorized to speak to reporters, reports the AP. I.L.