The relationship between Singapore and India is built on shared values, economic opportunities, and a convergence of interests on key global issues. With more than 20 regular bilateral mechanisms, dialogues, and exercises, our collaboration extends across various sectors, providing a robust framework for governmental, commercial, and people-to-people exchanges.
Singapore's role as a Guest Country under India's Presidency of G20 in 2023 underscores the significance of our bilateral ties. Singapore is not just India's largest trade partner in Asean; it is a key source of foreign direct investment, external commercial borrowings, and foreign portfolio investment.
The Comprehensive Economic Cooperation Agreement (CECA) has significantly elevated India’s economic partnership, propelling bilateral trade from US$6.7 billion in FY 2004-05 to a robust US$35.59 billion in 2022-23. This remarkable growth showcases Singapore’s ascent to being India’s eighth largest trade partner, a status underscored by an impressive 18% growth rate over the previous year, marking a positive and upward trajectory in Singapore-India ties.
In the context of India’s burgeoning economic ties with Singapore, the FDI inflows from Singapore to India, totalling US$144.04 billion, represent a significant 23% of India’s total FDI. Concurrently, India’s reciprocal outward FDI to Singapore stands at US$83.46 billion, underscoring the depth and vigour of the economic engagement between these nations. These figures not only reflect a steady increase in investment flow from Singapore but also highlights the evolving and dynamic nature of the bilateral relationship, with both countries progressively bolstering their investment cooperation.
Singapore’s financial prominence is notably reflected in its ties with India. Over 80% of offshore bonds listed Indian issuers are on the Singapore Exchange S68 Group, aligning with the broader Asian trend where about 82% of international bonds are SGX-listed, and 15% opted for dual or multiple listings in 2022. Additionally, Singapore’s asset management sector has significantly grown, with total assets under management (AUM) increasing by 16% in 2021 to $5.4 trillion. With Singapore-based investors managing over US$100 billion in AUM in India, these trends highlight the strengthening financial relationship between the two countries.
The collaboration extends beyond economics to skill development, with Singapore actively partnering with the Indian government to establish skill development centres. These initiatives, including the World Class Skill Centre (WCSC) in Delhi, underscore the commitment to nurturing talent and fostering innovation.
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The rich tapestry of cultural exchanges between India and Singapore significantly enhances the relationship between these two nations. These exchanges manifest in various forms, including performing arts, theatre, museums, languages, and youth exchanges. The Indian expatriate community in Singapore plays a pivotal role in these cultural interchanges. Their presence and active participation in Singaporean society foster deeper people-to-people connections and strengthen the cultural bonds between the two countries. This vibrant interaction not only enriches the multicultural landscape of Singapore but also serves as a testament to the strong ties and mutual appreciation that exist between India and Singapore.
Maharashtra is committed to be a reliable and stable partner for Singapore and the global community. Maharashtra, with its vibrant economy, skilled workforce, and conducive business environment, is poised to play a pivotal role in driving India's economic growth and contributing to global stability.
Eknath Shinde is the chief minister of India's state of Maharashtra
