(General Studies II – International Relations – Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests)
- India-Singapore relations are characterized by vibrancy and continuous expansion, with new opportunities emerging in areas like digitalisation, skills development, sustainability, healthcare, advanced manufacturing, and connectivity.
- The recent visit of India’s Prime Minister to Singapore underscores the importance of this relationship, which has evolved into a strategic partnership with wide-ranging dimensions.
Key Aspects of India-Singapore Relations –
1. Economic Partnership
- Trade Relations:
- Singapore is India’s largest trading partner within ASEAN and the sixth-largest globally.
- This relationship is bolstered by strong economic linkages, with Singapore also being the largest source of Foreign Direct Investment (FDI) in India.
- Investment Hub:
- Singapore acts as a critical gateway for international investments in India, highlighting its importance in India’s economic landscape.
- Singapore provides a global window that India’s traditional financial hubs like Chennai, Kolkata, and Mumbai can no longer offer, emphasizing the need for India to address its regulatory shortcomings to better complement Singapore’s efficiency.
2. Strategic and Defence Cooperation
- Defence Cooperation: The relationship has gained a strategic and defence component over the years, particularly in the maritime domain. Singapore plays a key role in India’s regional security narrative, particularly with respect to the Indo-Pacific region.
- ASEAN & Regional Security: Singapore has been pivotal in shaping India’s “Look East” and later “Act East” policies, helping India secure its status as a dialogue partner with ASEAN. This partnership is crucial for navigating regional security concerns, especially in relation to Myanmar and China’s growing influence in the Indo-Pacific.
3. Historical and Diasporic Ties People-to-People Relations:
- Singapore has a strong Indian diasporic presence, with the country hosting the largest concentration of IIT and IIM alumni outside India. This reflects the deep historical ties that began with Indian migration in the 19th century, contributing to Singapore’s transformation into a high-achievement hub.
- Indian National Army: Singapore holds historical significance as the base for the Indian National Army (INA) during India’s independence struggle, symbolizing long-standing people-to-people ties.
4. New Frontiers and Emerging Sectors
- Technological Collaboration: India and Singapore are exploring new avenues in digitalisation and advanced manufacturing, positioning both countries as leaders in technology-driven development.
- Healthcare & Sustainability: There are ongoing collaborations in healthcare and sustainability, with both nations focusing on innovation in these sectors to address global challenges.
| Geo-economics of Semiconductor chips o The Memorandum of Understanding (MoU) on an India-Singapore Semiconductor Ecosystem Partnership was signed, marking a significant step in semiconductor collaboration. o The India Semiconductor Mission, launched in 2021 with a Rs 76,000 crore incentive scheme o Singapore has 10% of global semiconductor output, 5% of global wafer fabrication capacity, and 20% of semiconductor equipment production. o India can leverage Singapore’s expertise in best practices for semiconductor ecosystem management and attract semiconductor equipment and material manufacturers |
5. Geopolitical and Regional Influence
- Myanmar Crisis: Given India’s proximity to Myanmar and Singapore’s involvement through ASEAN, the crisis in Myanmar remains a significant issue on the bilateral agenda.
- Indo-Pacific Engagement: As India’s regional narrative shifts to the Indo-Pacific, both countries are navigating challenges posed by Chinese military and political influence, balancing ASEAN centrality with emerging frameworks like QUAD.
Challenges and Opportunities –
- Regulatory Shortcomings: Despite the strong economic relationship, India must address its regulatory inefficiencies to further leverage Singapore’s position as a global investment hub.
- Chinese FDI: The potential reopening of Chinese FDI into India, as mentioned in India’s Economic Survey, could see Singaporean companies playing a significant role in facilitating such investments.
India-Singapore relations have matured into a comprehensive partnership encompassing trade, strategic interests, and people-to-people connections. While new opportunities are emerging in sectors like digitalisation and advanced manufacturing, both countries face challenges such as regulatory hurdles and regional security concerns. By addressing these issues and building on the existing framework, India and Singapore can continue to deepen their cooperation, benefiting both nations in a rapidly changing global environment.
