Recently, India and Singapore elevated their bilateral ties to a “comprehensive strategic partnership” and signed MoUs, during a bilateral meeting in Singapore.
Key Outcomes of the Recent Bilateral Meeting
- Elevation to Comprehensive Strategic Partnership: India and Singapore upgraded their bilateral relationship to a “comprehensive strategic partnership.”
- Four MoUs Signed:
- Cooperation in Digital Technologies: Focuses on collaboration in digital technologies between the two countries.
- India-Singapore Semiconductor Ecosystem Partnership: Aims to develop resilient semiconductor supply chains and advance manufacturing in the semiconductor sector.
- Cooperation in Health and Medicine: Enhances bilateral cooperation in healthcare and medical fields.
- Educational Cooperation and Skills Development: Promotes collaboration in education and skills development to foster mutual growth and expertise sharing.
- South China Sea: They reaffirmed the importance of maintaining peace, security, stability, safety, and freedom of navigation in the South China Sea, advocating for the peaceful resolution of disputes in accordance with international law, particularly the UNCLOS.
- Cultural Initiatives:The upcoming inauguration of India’s Thiruvalluvar Cultural Centre in Singapore was announced.
- India-ASEAN relations: The leaders also exchanged views on important regional and global issues of mutual interest, including India-ASEAN relations and India’s vision for the Indo-Pacific.
- Future Collaboration: India and Singapore agreed on further collaboration in areas like skilling, digitalization, mobility, advanced manufacturing, semiconductors, AI, healthcare, sustainability, and cybersecurity.
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Overview of India and Singapore Relations
- Geographic Location of Singapore: Singapore is an island country situated off the southern tip of the Malay Peninsula in Southeast Asia.
- Position Relative to Major Bodies of Water: It is positioned between the Indian Ocean and the South China Sea.
- Hemispheric Location: Singapore is located in both the Northern and Eastern Hemispheres.
- Borders: To the east, Singapore borders the South China Sea and to the west, it borders the Strait of Malacca.
- Historical Relations between India and Singapore:
- Colonial Era Connections: The modern relationship began in 1819 when Sir Stamford Raffles established a trading station in Singapore, strategically located on the Straits of Malacca.
- Crown Colony: Singapore became a crown colony and was governed from Kolkata until 1867, embedding colonial connections in institutions, practices, and the usage of English.
- Post Independence Relations between India and Singapore:
- Early Diplomatic Recognition by India: India was among the first countries to recognize Singapore’s independence in 1965, further solidifying the strong bilateral relationship.
- Strategic Partnership: India-Singapore relations were elevated to Strategic Partnership in 2015.
- Basis of India-Singapore Relations: On shared values and approaches, economic opportunities and convergence of interests on key issues.
- Extensive Bilateral Agreements: There are more than 20 regular bilateral mechanisms, dialogues and exercises.
- Shared Membership in Global and Regional Forums: Both are members of a number of forums, including East Asia Summit, G20, Commonwealth, IORA (Indian Ocean Rim Association) and IONS (Indian Ocean Naval Symposium).
- Large Indian Diaspora: The presence of a significant Indian community in Singapore is a testament to the enduring cultural and people-to-people links.
- Rich History of People-to-People Exchanges: Singapore was historically the home of the Indian National Army, symbolizing strong ties.
- Key Agreements signed between India and Singapore:
- The Comprehensive Economic Cooperation Agreement (CECA) between India and Singapore was signed in 2005 and renewed in 2018.
- Double Taxation Avoidance Agreement (1994, Protocols signed in 2011)
- Bilateral Air Services Agreement (1968, revised in 2013)
- Defence Cooperation Agreement (2003, enhanced Agreement signed in 2015)0
- Mutual Recognition Agreement on Nursing (2018) and cooperation in Fintech (2018)
- Agreement for Conduct of Joint Army Training and Exercises (renewed in 2019)
- Military Exercises:
- Navy: SIMBEX
- Air Force: SINDEX
- Army: Bold Kurukshetra
- India-Singapore Ministerial Roundtable (ISMR)
- About: The ISMR is a key bilateral platform for Ministers from Singapore and India to discuss bilateral cooperation and exchange views on issues of mutual interests.
- Beginning: Its inaugural meeting was held in New Delhi in September 2022 involving key ministers from both sides.
- Focus On: Review various aspects of their Strategic Partnership and identify new avenues to further elevate and broaden it.
- Second ISMR: The Second India-Singapore Ministerial Roundtable (ISMR) was recently held in Singapore on 26 August 2024.
Significance of Singapore for India
- India’s Largest Source of FDI in 2023-24: In the year 2023-24, Singapore was the largest source of foreign direct investment (FDI) for India, with an estimated $11.77 billion in inflows.
- Key Trade Partner: In bilateral trade, Singapore was the sixth largest global trade partner of India in 2023-24 with a total trade of $35.61 billion.
- Singapore is India’s largest trading partner amongst the ASEAN countries .
- Logistic and Financial Hub: Combined with a good enabling environment, strong air connectivity and the presence of a large Indian community, Singapore has emerged as a key offshore logistic and financial hub for many Indian corporate/houses.
- Largest Concentration of IIT and IIM Alumni: Singapore hosts the largest concentration of IIT and IIM alumni outside India.
- This is particularly significant given the recent rise in Indian diasporic presence in North America and Europe.
- Contribution to Singapore’s Multicultural Identity: The older generation of Indian immigrants contributed immensely to making Singapore a secular and multicultural society.
- Singapore as a Magnet for Indian Tourists: Singapore continues to attract a significant number of Indian tourists, further strengthening the bond between the two countries.
- Singapore’s Role in India’s “Look East” and “Act East” Policies
- Since the 1990s, Singapore has been a critical partner as India developed its regional “Look East” and later “Act East” policies.
- Facilitating India-ASEAN Relations: Singapore was instrumental in helping India become a sectoral dialogue partner and eventually a full dialogue partner of ASEAN.
- This partnership has strengthened India’s engagement with Southeast Asia.
- The India-ASEAN relationship has significant implications for South Asia due to Myanmar’s role as a bridge between South and Southeast Asia.
- The ongoing civil war and the erosion of central authority in Myanmar have major regional implications.
- India’s geographical proximity to Myanmar, combined with Singapore’s association through ASEAN, ensures that Myanmar’s situation will be a key agenda item in India-Singapore discussions.
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Broadening Scope of India and Singapore Relations
- Defence and Maritime DImensions: The relationship between India and Singapore now includes a significant defence and maritime dimension, reflecting its expanded scope over the years.
- India’s Indo-Pacific Focus and Geopolitical Shifts: India’s regional narrative has extended to the Indo-Pacific, responding to Chinese political and military assertiveness.
- Emergence of QUAD: This shift has led to a re-evaluation of traditional approaches like ASEAN centrality and the emergence of new frameworks such as the QUAD.
- Opportunities and Challenges in Regional Dynamics: The evolving geopolitical landscape presents both opportunities and challenges for India’s relationships with ASEAN and Singapore.
- Emerging Economic Opportunities
- The latest Economic Survey had mentioned the possibility of Chinese FDI into India, a significant development after years of stagnation.
- Singaporean entities and companies are expected to play a major role in this new economic landscape.
September 6, 2024
