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Foreign Policy Watch: India-ASEAN

 Singapore: A partner in India’s growth story  

Explained | International Relations | Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India

Why in the News?

The PM’s upcoming visit to Singapore offers a chance to reflect on the current state of the relationship. India-Singapore ties are dynamic, continually presenting new opportunities.

India-Singapore Bilateral Relations

  • Historical Ties: Diplomatic relations were established shortly after Singapore’s independence in 1965, with India being one of the first countries to recognize Singapore. 
    • The relationship has evolved through high-level visits and collaborations, particularly since the 1990s.
  • Look East Policy: Singapore has been pivotal in India’s “Look East” policy initiated in the early 1990s, which aimed to strengthen economic and strategic ties with Southeast Asia.
  • Comprehensive Economic Cooperation Agreement (CECA): Signed in 2005, CECA has significantly enhanced trade and investment ties, making Singapore India’s largest ASEAN trading partner and a key foreign direct investment (FDI) source.
  • Defense and Security Cooperation: The bilateral relationship includes extensive defence cooperation, with joint military exercises and training, particularly in maritime security, reflecting shared strategic interests.

What is Singapore’s contribution to India’s Growth Story?

  • Economic Hub: Singapore is India’s largest trade partner in ASEAN. Singapore serves as a crucial gateway for Indian companies seeking to expand in Southeast Asia, providing a robust platform for trade and investment.
  • Largest Source of FDI:  It is the leading source of FDI, among the largest sources of External Commercial Borrowings and Foreign Portfolio Investment, accounting for about 17% of total FDI inflows since 2000, with investments exceeding USD 136 billion over the last 22 years. 
  • Knowledge exchange: Singapore’s status as a hub for Indian talent, especially from IITs and IIMs, facilitates knowledge exchange and enhances India’s capabilities in various sectors
  • Cultural Exchange: The strong cultural ties, supported by the Indian community in Singapore, have enriched bilateral relations. Ethnic Indians constitute approximately 9.1% of Singapore’s resident population.

How this relationship can achieve more considering the ASEAN region and Chinese dominance? (Way forward)

  • Strategic Partnership: The relationship can be further strengthened by enhancing strategic dialogues and collaborations in areas like security, technology, and sustainability, particularly in the context of the Indo-Pacific region.
  • Regional Connectivity: Initiatives like the Trilateral Highway, which aims to connect India with Myanmar and Thailand, can enhance regional connectivity and trade, positioning India and Singapore as central players in ASEAN.
  • Countering Chinese Influence: As China asserts its influence in the region, India and Singapore can collaborate more closely to address shared concerns, leveraging their partnership to promote stability and security in Southeast Asia.
  • Emerging Technologies: Focusing on emerging sectors such as semiconductors, green technologies, and electric mobility can open new avenues for cooperation, aligning with both nations’ goals for sustainable development.

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