🔊 Take a moment and listen

India and Singapore on Monday strengthened their bilateral cooperation by adding advanced manufacturing, semiconductors, and aviation and maritime connectivity as new areas of collaboration under a ministerial mechanism. These topics were key focuses at the second India-Singapore Ministerial Roundtable (ISMR) hosted by Singapore. The mechanism was broadened with more ministers from both sides, signalling the increasing importance and scope of this partnership, according to sources familiar with the discussions.

The two nations finalised around half a dozen agreements in sectors such as food trade, digital cooperation, skill development, healthcare, and the green economy. The sources added that these agreements are expected to be unveiled during Prime Minister Narendra Modi’s visit to Singapore next month.

External affairs minister S Jaishankar described the talks as productive in a post on X, highlighting the exploration of cooperation in sustainability, healthcare, and connectivity. “ISMR enables the emergence of a more contemporary partnership,” he stated.

Singapore’s foreign minister Vivian Balakrishnan, speaking to reporters after the meeting, confirmed that advanced manufacturing, semiconductors, and connectivity are significant new areas added under the mechanism, offering substantial opportunities for businesses in both countries. He also noted that the meeting set the stage for Modi’s expected visit, emphasising the vast potential in India’s aviation sector, with Indian airlines placing orders for nearly 1,000 new aircraft. Highlighting India’s “major upgrade” of its aviation sector, Balakrishnan remarked, “This is a once in a two- or three-decade opportunity, and it’s good that we are…in the front seat and have a chance.”

Commerce Minister Piyush Goyal stated that the discussions focused on “further elevating and broadening our strategic partnership across the key pillars of ISMR,” reaffirming the shared vision of deepening economic ties. The first ISMR meeting in September 2022 involved India’s commerce, finance, and foreign ministers, alongside Singapore’s finance, foreign, transport, and trade ministers. For this second meeting, India included Electronics and IT Minister Ashwini Vaishnaw, while Singapore added Home Minister K Shanmugam, Digital Development Minister Josephine Teo, and manpower minister Tan See Leng.

In the inaugural roundtable, key areas of collaboration identified were digitalisation, food trade, energy and green economy, skill development, healthcare, and pharmaceuticals. Since then, India and Singapore have linked their digital payment systems – Unified Payments Interface (UPI) and PayNow – to facilitate real-time payments between banks or e-wallets, and a pilot shipment involving digital exchange of bills of lading through the TradeTrust framework was conducted.

Balakrishnan indicated there is further potential in digital payments, including a regional real-time payment system. He mentioned that discussions covered cybersecurity, rule standardisation, and greater interoperability that could extend the system’s reach to other countries.

The Indian ministers also held meetings with Singapore President Tharman Shanmugaratnam and Prime Minister Lawrence Wong. Finance Minister Nirmala Sitharaman noted in a post on X that the conversation with Wong demonstrated the strong foundation of India-Singapore relations. “Together, we shall work to strengthen the relationship for the benefit of our people,” she said.

Wong, who led Singapore’s delegation at the first ministerial roundtable during his tenure as deputy premier, shared on X that the ISMR is a critical platform for enhancing bilateral cooperation. “Glad that progress has been made on several fronts since our last meeting [and] new ideas for cooperation are being pursued, including in advanced manufacturing and connectivity,” he remarked.

The two sides also discussed commemorating the 60th anniversary of diplomatic relations, as well as regional and global cooperation, including at ASEAN and G20.

On the eve of the ministerial roundtable, Goyal met with global investment firms managing assets over $500 billion at the India-Singapore Business Roundtable to discuss investment opportunities in India. The business leaders represented Temasek Holdings, Blackstone Singapore, DBS Bank, Singapore Airlines, OMERS, and Keppel Infrastructure.

Also Read | Singapore Tourism Board and PhonePe join hands to promote UPI payments in Singapore

For the 2023-24 period, Singapore emerged as the largest source of foreign direct investment (FDI) for India, with an estimated $11.77 billion in inflows. Cumulative inflows from Singapore from April 2000 to March 2024 totalled approximately $159.94 billion. In terms of bilateral trade, Singapore ranked as India’s sixth-largest global trade partner in 2023-24, with a total trade value of $35.61 billion, representing about 29% of India’s total trade with ASEAN.

Be a part of Elets Collaborative Initiatives. Join Us for Upcoming Events and explore business opportunities. Like us on Facebook , connect with us on LinkedIn and follow us on Twitter, Instagram.