India and Singapore Elevated Ties

Syllabus: GS 2/IR

In News

• India and Singapore enhanced their relationship with the signing of four Memorandum of Understanding (MoU) during Prime Minister Narendra Modi’s visit to Singapore.

Key Agreements 

• Digital Technologies: It covers digital technologies, including cybersecurity, 5G, super-computing, quantum computing, and AI, and focuses on upskilling and reskilling workers.
• Semiconductor Ecosystem:It  involves cooperation in semiconductor cluster development and talent cultivation.
  • It aims to facilitate investment by Singaporean companies in India’s semiconductor sector.
• Health Cooperation: It focuses on joint research, innovation, and human resource development in healthcare and pharmaceuticals.
  • It also aims to promote Indian healthcare professionals in Singapore.
• Skill Development:It  targets educational cooperation and technical/vocational training, enhancing ongoing skill development initiatives.

India – Singapore Relations

• Historical : Strong commercial, cultural, and people-to-people links dating back over a millennium.
  • Modern ties linked to Sir Stamford Raffles establishing a trading station in 1819.
  • India recognized Singapore soon after its independence in 1965.
•  Strategic : India-Singapore relations were elevated to Strategic Partnership during the visit of Prime Minister Narendra Modi to Singapore in 2015.
• High-Level Exchanges: PM Modi’s visits in 2018 and 2022 marked significant milestones, including keynote addresses at major events.
  • Singapore PM Lee Hsien Loong’s visits to India included Republic Day celebrations and the G20 Leaders’ Summit.
• India-Singapore Ministerial Roundtable (ISMR): Inaugural ISMR in 2022 focused on digital connectivity, Fintech, green economy, and other areas.
  • 2nd ISMR in 2024 added new pillars like Advanced Manufacturing and Connectivity.
• Trade and Economic Cooperation: Singapore is India’s largest trade partner in ASEAN. It is the leading source of FDI, among the largest sources of External Commercial Borrowings and Foreign Portfolio Investment.
  •  Bilateral trade between the two countries grew significantly from USD 6.7 billion in FY 2004-05 to USD 35.6 billion in FY 2023-24.
  •  Singapore ranks as India’s 6th largest trade partner, accounting for 3.2% of India’s total trade. In FY 2023-24, India’s imports from Singapore were USD 21.2 billion (a 10.2% decrease from the previous year), while exports to Singapore reached USD 14.4 billion (a 20.2% increase from the previous year).
• Fintech: Initiatives include the UPI-PayNow linkage, RuPay card acceptance, and other cross-border Fintech developments.
• Science & Technology Cooperation: ISRO has launched several Singaporean satellites.
  • Collaborative efforts in digital health and medical technologies.
• Cultural Cooperation: Regular exchanges in performing arts, theatre, and other cultural spheres.
  • Active promotion of Indian art forms in Singapore.
• Multilateral Cooperation: Singapore has joined international initiatives like the International Solar Alliance and Global Biofuel Alliance.
  • Both countries are part of multilateral groups such as IORA, NAM, and the Commonwealth.
• Indian Community: Indians make up about 9.1% of Singapore’s resident population and 21% of foreign residents.
  • Significant Indian diaspora with high concentrations of IIT and IIM alumni.

Importance 

•  India’s relationship with ASEAN has grown significantly, with a special emphasis on Singapore, one of the most dynamic countries in the region.
• The India-Singapore relationship is grounded in mutual respect and trust, with a diverse and mature cooperation that provides a solid base for further development.
• Singapore has a central role in India’s “Look East” and “Act East” policies, particularly in security, connectivity, technology, and sustainability.
• The India-Singapore partnership will enable us to enhance economic cooperation, foster mutual growth and tackle future challenges together.

Future Outlook 

• The time is right for India and Singapore to elevate their bilateral relationship, reflecting current global and national realities.
• The India-Singapore partnership is set to enhance economic cooperation, mutual growth, and address future challenges together.
• There is the need to focus on future technologies such as semiconductors, green technologies, and electric mobility, and to collaboratively address connectivity and energy challenges.
•  Rapid technological changes necessitate new skills. India and Singapore can collaborate on designing and implementing joint skill development programs.

Source:IE