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The Strait of Opportunity: India-Singapore Relations
Context:
Singapore, established as a trading station by Sir Stamford Raffles in 1819, was governed from Kolkata until 1867. Recently, Prime Minister Narendra Modi’s visit signalled a new strategic direction for the growing bilateral relationship.
India-Singapore Relations:
Economic Engagement:
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- Singapore is India’s largest FDI source, investing $160 billion in two decades, boosting key sectors like telecommunications.
- CapitaLand plans to double its investments in India to $14.8 billion.
- Singapore ranks as India’s 6th-largest trading partner with $21.2 billion in imports and $14.4 billion in exports in 2024.
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Strategic Convergence:
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- India and Singapore share concerns about China’s regional assertiveness, driving deeper defence ties.
- The Singapore-India Maritime Bilateral Exercise (SIMBEX) has been held annually since 1994, showcasing robust military cooperation.
- Singapore, one of the world’s top defence spenders, aligns with India’s naval expansion.
- Defence exports, particularly ammunition and military hardware, present further cooperation opportunities.
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Emerging Cooperation:
- Health and semiconductor technology sectors show potential for collaboration.
- Indian companies are increasingly listing on the Singapore Stock Exchange, deepening economic integration.
- Gujarat’s GIFT city offers new opportunities for financial partnerships.
ASEAN Relations:
- India’s Act East Policy highlights the significance of ASEAN, with Singapore as a dynamic partner.
- Singapore is a top trading partner (US$ 35.6 billion in 2023-24) and significant FDI source (US$ 11.8 billion in 2023-24).
Key Areas of Collaboration:
- Infrastructure: Singapore’s expertise in smart cities and urban planning complements India’s infrastructure projects.
- Sustainability: India’s net-zero goal by 2070 opens doors for joint sustainability efforts.
- Artificial Intelligence: Potential for AI research and development initiatives.
- Skill Development: Collaborative programs to upskill workers for future industries.
- Advanced Manufacturing: Joint ventures in automation, robotics, and supply chain development.
