India and Singapore commit to strengthening ties in new areas

The Comprehensive Economic Partnership Agreement (CEPA) has significantly increased bilateral trade, and Singapore remains a major source of foreign direct investment for India. Going forward, India and Singapore are deepening their financial and economic ties, focusing on digital connectivity, fintech, and the green economy. Recent meetings reviewed progress and explored new growth areas, while also engaging with top business leaders for investment opportunities. 

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India and Singapore are strengthening their financial and economic partnership. At the 2nd India-Singapore Ministerial Roundtable (ISMR) in Singapore on Monday, the two sides focused on digital connectivity, fintech, the green economy, and green hydrogen.

Discussions covered sustainability, healthcare, connectivity, and advanced manufacturing. The Indian delegation was led by Finance Minister Smt Nirmala Sitharaman, Commerce and Industry Minister Shri Piyush Goyal, and Electronics and IT Minister Shri Ashwani Vaishnav. Singapore’s delegation, led by Deputy Prime Minister Gan Kim Yong, also included key figures in trade, foreign affairs, and digital development.

The ISMR is a crucial platform for bilateral cooperation between the two economies, and the first meeting was organised in 2022. The second meeting has reviewed progress and identified new growth areas.

Commerce Minister Piyush Goyal also met with global business leaders from Temasek Holdings, DBS Bank, OMERS, Keppel Infrastructure, and TVS Motor Company to explore investment opportunities in India.

India and Singapore have always been actively seeking new avenues to enhance their bilateral relationship over the coming decade, with more than 20 planned mechanisms and dialogues, according to Indian High Commissioner Mr. P. Kumaran. On February 22, 2022, External Affairs Minister S. Jaishankar and Singapore’s Foreign Minister Dr. Vivian Balakrishnan discussed travel, economic cooperation, and regional developments. In the same year, at the India-Singapore Technology Summit 2022, the two nations signed a memorandum of understanding (MoU) on Science, Technology, and Innovation, aiming to advance collaboration across sectors such as advanced engineering, manufacturing, and emerging technologies.

This MoU led to further agreements to foster bilateral partnerships in innovative technologies, focusing on deep tech (including AI and IoT), clean tech (renewable energy), and genome and bioinformatics research. In March 2022, the ‘InSpreneur Connect’ event showcased startups across various sectors, reflecting the growing innovation collaboration. Later in the year, the Indian Navy hosted the 29th Singapore-India Maritime Bilateral Exercise (SIMBEX) in October, demonstrating robust maritime cooperation. India also invited Singapore to participate as a Guest Country in G20 meetings and summits in 2023.

Significant recent milestones include the launch of a real-time payment linkage between India’s UPI and Singapore’s PayNow, facilitating instant and low-cost cross-border transactions. In July 2023, an MoU was extended for another five years to enhance public administration cooperation. Additionally, during Admiral R Hari Kumar’s visit to Singapore in May 2023, the ASEAN-India Maritime Exercise (AIME) 2023 was inaugurated, highlighting deepened defense ties. Union Education Minister Mr. Dharmendra Pradhan’s visit in May also focused on expanding educational and skill development partnerships.

Further, under the Comprehensive Economic Partnership Agreement (CEPA), trade between India and Singapore has grown from US$ 6.7 billion in 2004-05 to US$ 35.6 billion in 2023-24. India’s exports to Singapore were $14.4 billion, while imports were $21.1 billion. Singapore also happens to be India’s top source of FDI with about $11.77 billion in inflows. Since the year 2000, Singapore’s total FDI in India has reached approximately $159.94 billion (as of March 2024).