India and Singapore: Strengthening Relations in Healthcare and Technology

India and Singapore Relations: Historical Context
For over a thousand years, India and Singapore have maintained cultural and commercial connections, facilitated by maritime trade routes linking the two areas.

Until 1867, Singapore was administered from Kolkata under British rule, which resulted in a legacy of common institutions, legal frameworks, and the extensive use of English.

India was one of the earliest nations to acknowledge Singapore's independence in 1965.

Contemporary Collaboration

Strategic Partnership: India and Singapore enhanced their relationship to a Strategic Partnership during the visit of India's Prime Minister to Singapore in 2015.

In 2023, it was elevated to a Comprehensive Strategic Partnership.

Economic and Trade: According to the Ministry of Commerce, India's exports to Singapore amounted to $14.4 billion, while India's imports from Singapore totaled $21.2 billion in 2023–24. Singapore ranks as India's foremost trading partner in ASEAN and is a leading Source of Foreign Direct Investment (FDI). Essential agreements consist of:

Comprehensive Economic Cooperation Agreement (CECA) – executed in 2005, evaluated in 2018.

Agreement for the Avoidance of Double Taxation (ADTA);

Digital and Financial Connectivity: In 2023, India’s UPI was connected with Singapore’s PayNow, facilitating effortless cross-border digital transactions.

Singaporean companies are putting money into India's digital infrastructure and intelligent urban areas.

Defence and Security: Joint military drills and training initiatives occur routinely.

Defence Cooperation Agreement was signed in 2003 and strengthened in 2015.

Geopolitical Importance: Singapore plays a crucial role in India’s Act East Policy and Indo-Pacific strategy.

Both counts participate in platforms such as G20, East Asia Summit, and IORA.

Ministerial Roundtable Mechanism (ISMR): It serves as a high-level dialogue forum, initiated in 2022. It encompasses six strategic pillars, including advanced manufacturing, connectivity, digitalization, healthcare and medicine, skills development, and sustainability.

The first meeting took place in New Delhi in 2022, the second meeting occurred in Singapore in August 2024, and the third edition was conducted in New Delhi.

Main Issues & Difficulties

Investment Barriers: Although Singapore is India's top FDI provider, investment amounts fell by more than 30% in the previous year.

Businesses in Singapore point to complex regulations, delays caused by bureaucracy, and erratic policy changes as obstacles to investing in India.

Overlooked Trade Possibilities: Singapore regarded India’s exit from the Regional Comprehensive Economic Partnership (RCEP) as a ‘lost chance’ for enhancing ASEAN integration.

Despite India's concerns about China's influence, the action resulted in a disconnect in regional trade coordination.

Infrastructure and Connectivity: Ambitious initiatives such as the underwater solar energy and data cable connecting India and Singapore encounter technical and regulatory challenges.

Establishing reliable data corridors and energy pipelines necessitates consensus on cybersecurity, environmental regulations, and international protocols.

Talent and Skill Shortages: Singapore is keen on India’s demographic advantage; however, aligning skills with industry demands continues to be a challenge.

Collaborative training initiatives are in progress, but expanding them to fulfill the needs in industries such as semiconductors and AI remains a challenge.

Path Ahead

With India ascending globally and Singapore maintaining its leadership in finance and innovation, their collaboration is set for substantial growth.

The India–Singapore Ministerial Roundtable (ISMR) offers a senior-level platform to tackle issues and explore new opportunities for cooperation.