Nov. 30 (Bloomberg) -- India looks forward to the early signing of a comprehensive trade agreement with the European Union, Prime Minister Manmohan Singh said in New Delhi today, at the conclusion of a summit meeting between the two sides.

The trade agreement should be in place by the time of the next summit, Singh said. Talks between the two sides at the summit were productive, the Indian prime minister said.

``The leaders noted that bilateral trade and investment between India and the EU has been growing steadily and reflects the strengthening of bilateral economic ties,'' both sides said in a joint statement issued in New Delhi. ``India and the EU welcomed the progress achieved in the first few rounds of negotiations on the India-EU trade and investment agreement and reaffirmed commitment to further intensify negotiations.''

India is seeking to push through trade agreements with countries such as Singapore and Japan and blocs such as the Association of Southeast Asian Nations and the European Union as it tries to increase its share of global trade, which currently stands at about 1 percent.

The European Union and India share a common vision on the global agenda, said Jose Socrates, prime minister of Portugal, who currently heads the grouping. Summit talks today were focused mostly on trade, Jose Barroso, president of the European Commission, said at the same press conference.

Trade, Investment

The two sides held discussions on regional and global concerns such as measures on climate change and combating challenges posed by terrorism and reviewed a joint action plan to implement decisions taken at earlier summits.

The EU and India ``called on all parties to actively and constructively participate in the UN climate change conference in Bali in December,'' the joint communiqué said.

India's Singh called for measures on climate change that don't ``perpetuate poverty.'' The government has said that developing countries should not be asked to take environmental measures on par with developed nations when it comes to emissions.

Portugal's Socrates said a common vision was needed on climate-change measures.

Both sides also signed an agreement to strengthen cooperation in the field of science and technology.

The 27-nation EU is India's largest trading partner and a key source of overseas direct investment and technology. India-EU trade rose 10 percent on average each year between 2001 and 2006 to 46 billion euros ($68 billion) in 2006.

EU Investment

Total investments from the EU into India amounted to about $10.86 billion, 24 percent of the total investment flows to the South Asian nation from August 1991 to February 2007, the Indian government said. Total Indian investment in the EU in 2005-6 and the first six months of 2006-7 was $3.5 billion.

European Union Trade Commissioner Peter Mandelson said yesterday that a free-trade agreement with India will help ``shore up'' global demand if the world economy cools.

India and the EU are seeking a successful end to the Doha trade round through ``a comprehensive, balanced and ambitious outcome in all areas of negotiations,'' the two sides said.

India, the world's fastest-expanding major economy after China, is looking for new export markets to maintain record growth. An agreement with the European Union, which Mandelson said may be reached by the end of 2008, will lead to lower tariffs and increase trade between the two.

Nuclear Accord

Singh and Socrates discussed the developments in the civilian nuclear cooperation accord with the U.S., which seeks to end three decades of India's nuclear isolation and give access to U.S. technology and equipment.

India plans to negotiate a safeguards agreement with the global atomic energy regulator as part of steps to implement the U.S. nuclear accord, which is being delayed because of domestic opposition in the South Asian nation.

Apart from safeguards negotiations with the International Atomic Energy Agency, India needs to enter into separate agreements with the Nuclear Suppliers Group. Once this is obtained, U.S. President George W. Bush will seek Congressional approval to make the agreement operational.

To contact the reporters on this story: Bibhudatta Pradhan in New Delhi at bpradhan@bloomberg.net; Chris Burns in New Delhi at cwburns@bloomberg.net.

Last Updated: November 30, 2007 05:13 EST