India’s strategic outreach in Southeast Asia is strongly supported by its growing partnership with Singapore, which is vital to New Delhi’s Act East policy. Based on historical links, economic synergies, and a common commitment to regional stability, both countries prioritise a diplomatic policy that balances relations with multiple countries. Prime Minister Narendra Modi’s visit to Singapore this week intends to strengthen this connection by exploring new opportunities for collaboration in technology, talent development, and regional security, emphasising Singapore’s critical role in India’s Southeast Asian engagement policy.
Historical Foundation and Evolution of Bilateral Ties
India was one of the first countries to establish diplomatic ties with Singapore, just 15 days after gaining independence in August 1965, reflecting the non-aligned sentiment of the time. Over the years, this connection has developed into a powerful partnership marked by strong economic integration, defence cooperation, and cultural exchanges, all shaped by current strategic imperatives. As their relationships grew stronger, both countries responded to the shifting geopolitical landscape of the Indo-Pacific area.
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- Defence Cooperation and Maritime Security: Maritime security and defence cooperation have been important to the India-Singapore collaboration, particularly considering Singapore’s strategic location at the Malacca Strait chokepoint.
- Singapore has always supported India’s growing role in regional maritime security, particularly through bilateral navy exercises like SIMBEX, which have expanded beyond anti-submarine warfare to include maritime interdiction and air defence.
- The co-hosting of the ASEAN-India Maritime Exercise in 2023 bolster defence ties. This collaboration broadens India’s strategic reach in the Indo-Pacific while emphasising Singapore’s role as a regional security partner.
- Multilateral Engagement and Regional Stability: Singapore’s major role in India’s Southeast Asia outreach is further demonstrated by their participation in multilateral forums such as the ASEAN-India Summit, the East Asia Summit (EAS), and the ASEAN Regional Forum (ARF).
- Singapore, as an active member, acts as a liaison between India and the other ASEAN countries, facilitating conversation and cooperation on commerce, connectivity, maritime security, and terrorist issues.
- Both countries actively promote the Indo-Pacific Oceans Initiative (IPOI) and emphasise compliance with international law, particularly in the South China Sea, demonstrating their commitment to regional stability and growth.
Strategic Economic Partnership
- Leveraging Singapore’s Geopolitical Location: Singapore’s strategic location at the crossroads of the East-West maritime route—one of the world’s most important economic corridors—naturally complements India’s aspirations to strengthen connections with Southeast Asia.
- Since the signing of the Comprehensive Economic Cooperation Agreement (CECA) in 2005, bilateral relations have improved significantly.
- Singapore has emerged as one of India’s leading sources of foreign direct investment, with considerable investments in fintech, real estate, and infrastructure. Indian entrepreneurs and internet enterprises increasingly see Singapore as a gateway to Southeast Asia, creating a significant footprint for regional operations.
Digital and Financial Connectivity
- Pioneering Future-Oriented Cooperation: In recent years, India and Singapore have become crucial partners in the fields of digitalisation and critical technologies. Singapore’s emphasis on innovation and technology complements India’s ambitions to become a premier digital economy.
- In 2021, India’s Unified Payments Interface (UPI) will be linked to Singapore’s PayNow, reflecting their commitment to increasing financial connectivity and boosting digital financial inclusion through immediate, low-cost cross-border remittance.
- Furthermore, both countries have increased collaboration in the fintech sector, with Singapore serving as a base for Indian fintech firms looking to grow into Southeast Asia. Joint activities in blockchain, digital banking, and cybersecurity demonstrate their common commitment to innovation.
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Pandemic Cooperation and Supply Chain Resilience
- A Stronger Partnership: The Covid-19 pandemic demonstrated the effectiveness of India-Singapore collaboration in handling public health issues and establishing supply chain resilience.
- During India’s second wave in 2021, Singapore contributed critical medical supplies and oxygen, and India responded by providing vaccines through the Vaccine Maitri program.
- Both countries worked together to keep supply chains resilient, particularly for important goods and services, laying the framework for future collaboration to improve supply chain resilience, particularly in key industries such as medicines and technology.
- Diplomatic Synergy in Regional and Global Contexts: Singapore’s diplomatic influence has been critical in directing ASEAN’s goals, which prioritise economic development, openness, and balanced ties with major world powers such as the United States and China.
- This strategy is consistent with India’s diplomatic strategies, which aim to maintain strategic autonomy while engaging with multiple global powers.
- In Southeast Asia, this alignment strengthens India’s ability to work with Singapore to traverse complicated power dynamics and interact with diverse countries on its own terms, contributing to regional stability.
Advancing India’s Act East Policy
- Long-Term Imperatives in the Indo-Pacific: The strengthening of India-Singapore relations is critical to promoting India’s Act East strategy and protecting its long-term strategic objectives in the Indo-Pacific region.
- India can broaden its reach and participation in Southeast Asia by capitalising on Singapore’s strategic location, diplomatic influence, and innovation capacity. The continuous deepening of this alliance will be critical in allowing both countries to handle regional concerns, promote economic integration, and contribute to a stable and secure Indo-Pacific region.
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Conclusion
Strengthening India-Singapore relations is critical for promoting India’s Act East agenda and maintaining regional stability. Moving forward, increased collaboration in digital innovation, defence, and supply chain resilience will boost both countries’ strategic importance in the Indo-Pacific region.
September 4, 2024
