The Prime Minister, Dr Manmohan Singh, chaired the First Meeting of the Trade and Economic Relations Committee. In his opening remarks Dr Singh said that the Government must devise a medium to long term strategy for India's economic interaction with the world, with a special focus on relations with India's neighbours and major economic partners. Dr Singh urged the TERC to devise a blue print to deal with the challenges and opportunities provided by the processes of globalisation. "Economic relations have come to increasingly influence strategic engagement. India's economic interaction with the world is still relatively limited and this must increase", Dr Singh said. He also called for greater inter-ministerial dialogue and coordination in this context.

At its first meeting the Committee discussed issues pertaining to India - US economic relations in preparation for the Prime Minister's visit to the United States in July 2005. Dr Singh said India must increase the level of economic interaction with the United States. "China's economic engagement with the US is ten times that of India. There is vast potential for increased trade and investment relations with the US. We must consider how we can realize this potential."

It may be recalled that the TERC was set up to function as a new institutional mechanism for evolving policies on economic relations with other countries, with the PM as chairman and Principal Secretary to PM as Convenor. Members of the TERC include the ministers of external affairs, finance, commerce and industries, deputy chairman of Planning Commission, chairman, PM's Economic Advisory Council, chairman, National Manufacturing Competitiveness Council and National Security Advisor.

The TERC will coordinate preparatory work on the strategy on economic relations with India's major economic partners, neighbours and regional economic groupings. The Committee may commission specialized studies, suggest mechanisms for promoting economic cooperation, suggest the scope and extent of economic engagement with identified countries and examine proposals for economic coordination between India and other countries.