In a bid to give depth to the government's 'Look East' Policy, Prime Minister Manmohan Singh on Tuesday said India and ASEAN would work for creation of Regional Trade and Investment area to take the bilateral trade to $30 billion by 2007.

This is to be achieved through progressive elimination of tariff and non-tariff barriers, progressive liberalisation of trade in services and through liberal and competitive investment regime, he said at the third Indo-ASEAN business summit.

"We are working towards completion of FTA negotiations between India and ASEAN. Only if we exhibit pragmatism, flexibility and courage will India-ASEAN trade relations grow in a manner commensurate with its potential," said Singh asserting that a balanced expansion of trade will boost industries.

The two sides have set a target to raise bilateral trade to $ 15 billion by 2005 and $ 30 billion by 2007, he said adding, "these are achievable if we focus on commodities which show a great potential for trade." He added that the 'Early Harvest' programme under the India-ASEAN Framework Agreement for immediate tariff concessions is a "confidence building measure and harbinger of what is to follow."

Reaffirming India's commitment to work closely with its neighbours, Singh said the Centre would support the efforts of state governments in promoting business-to-business links between the two regions. "As we look East and you (ASEAN) look West, it is natural, we look at each other in this enterprise of restoring to Asia its rightful place.