During Prime Minister Narendra Modi’s two-day visit to Singapore, India and Singapore signed four agreements to strengthen cooperation in semiconductors, digital technologies, skill development, and healthcare. Singapore is India’s 6th largest trade partner, accounting for 3.2% of India’s total trade.
Image Source: PIB
India and Singapore have elevated their bilateral relations to the level of Comprehensive Strategic Partnership during Prime Minister Narendra Modi’s two-day visit to Singapore.
The two sides signed four memorandums of understanding on Thursday (Sep 5, 2024), to enhance cooperation in semiconductors, digital technologies, skill development, and healthcare. The agreements were signed following bilateral meetings between Prime Minister Narendra Modi, currently visiting Singapore, and his counterpart Lawrence Wong.
Four new MoUs in tech, semiconductors, healthcare, and skills
The first Memorandum of Understanding (MoU) between Singapore’s Ministry of Digital Development and Information and India’s Ministry of Electronics and Information Technology focuses on boosting collaboration in digital technologies. This encompasses Digital Public Infrastructure (DPI), cybersecurity, 5G, and emerging technologies like super-computing, quantum computing, and artificial intelligence. Additionally, the MoU supports the upskilling and reskilling of workers within the digital domain.
The second Memorandum of Understanding (MoU), signed between India’s Ministry of Electronics and Information Technology and Singapore’s Ministry of Trade and Industry, establishes a partnership focused on the India-Singapore semiconductor ecosystem. The agreement will facilitate joint efforts in developing semiconductor clusters and cultivating expertise in semiconductor design and manufacturing. Additionally, it aims to attract investments from Singaporean companies, engaged in the global semiconductor value chain, into India. (Singapore is a key player in the global semiconductor supply chain, producing 10% of the world’s chips and 20% of the global semiconductor manufacturing equipment.)
The third Memorandum of Understanding (MoU), signed between India’s Ministry of Health and Family Welfare and Singapore’s Ministry of Health, focuses on strengthening collaboration in health and medicine. The agreement aims to foster joint research and innovation, enhance cooperation in human resource development for the healthcare and pharmaceutical sectors, and support the promotion of Indian healthcare professionals in Singapore.
The fourth Memorandum of Understanding (MoU), signed between India’s Ministry of Skill Development and Entrepreneurship and Singapore’s Ministry of Education, aims to enhance collaboration in education and skills development, with a particular emphasis on technical and vocational education and training. This agreement will build on and support existing skill development efforts between India and Singapore.
A glance over India and Singapore bilateral relations
India and Singapore share a close bilateral relationship built on aligned economic and political interests. India’s ‘Look East’ and ‘Act East’ policies, along with the Comprehensive Economic Cooperation Agreement (CECA) signed in 2005, have strengthened ties. Singapore plays a key role in regional supply chains and India’s engagement with Southeast Asia, supported by over 20 bilateral engagements and the India-ASEAN Free Trade Agreement (FTA) in Goods.
Following the CECA, bilateral trade between India and Singapore grew from US$ 6.7 billion in FY 2004-05 to US$ 35.6 billion in FY 2023-24. Singapore is India’s 6th largest trade partner, accounting for 3.2% of India’s total trade. In FY 2023-24, India imported US$ 21.2 billion worth of goods from Singapore (a 10.2% decline from the previous year) and exported US$ 14.4 billion worth of goods to Singapore (up by 20.2% from the previous year).
In FY 2023-24, Singapore became the largest source of Foreign Direct Investment (FDI) into India, with equity inflows reaching US$ 11.774 billion. From April 2000 to March 2024, cumulative FDI from Singapore to India totaled US$ 159.943 billion, making up 24% of India’s overall FDI. Key sectors attracting Singaporean investment include Services, Computer Software & Hardware, Trading, Telecommunications, and Drugs & Pharmaceuticals.
Meanwhile, cumulative Indian FDI to Singapore amounted to US$ 90.578 billion between January 2008 and June 2024, with recent figures showing US$ 4.87 billion in FY 2023-24, US$ 4.81 billion in FY 2022-23, and US$ 7.18 billion in FY 2020-21.
About 9,000 Indian companies are registered in Singapore, including 6 public sector undertakings (PSUs), 9 banks, and organizations like CII and FICCI. In India, over 440 Singaporean companies are registered, and institutions such as the Development Bank of Singapore, United Overseas Bank, Enterprise Singapore, the Economic Development Board, and the Singapore Tourism Board maintain offices.
The bilateral meeting in Singapore
During his visit to Singapore, Prime Minister Modi highlighted the strong partnership between India and Singapore in key areas such as skilling, digitalization, mobility, advanced manufacturing, semiconductors, AI, healthcare, sustainability, and cybersecurity. He praised Singapore as an inspiration for developing nations.
Both PM Modi and Singapore’s Prime Minister Lawrence Wong discussed opportunities for increased cooperation in Green Hydrogen and Green Ammonia, applauding collaborations between companies from both nations.
PM Wong welcomed India’s exemption on non-Basmati white rice exports to Singapore, while both leaders stressed the importance of strengthening food security. They also commended the success of digital initiatives like UPI-PayNow Linkage, ONDC-Proxtera Connectivity, and Trade Trust, enhancing interoperability in banking and trade.
Looking ahead, the two leaders plan to increase TradeTrust adoption and explore cooperation in critical and emerging technologies.
Read Related Articles:
India and Singapore commit to strengthening ties in new areas
