India-Singapore’s enduring ties, full of potential

If there ever was a examine in distinction between two nations, India and Singapore would most likely be nice contenders. On dimension, inhabitants, GDP per capita, landmass, each international locations are poles aside. And but, the historical past of India-Singapore relations has been one among sustained mutual respect and attempting to carve a singular area for themselves in a multipolar world.

That is the underlying spirit buoying Prime Minister (PM) Narendra Modi’s fifth go to to the island nation since assuming workplace. For a lot of Indians, Singapore has been an financial superb. Right now, an estimated 7.5% of Singaporean residents are of Indian origin, with a major extra Indian expat inhabitants working within the infotech, finance {and professional} companies area. In truth, India is Singapore’s foremost expertise accomplice, with a legacy of shut collaboration.

The muse of this relationship has sturdy historic and financial origins. Within the final twenty years, commerce between India and Singapore has gone up by two and a half instances. Right now, India’s exports to Singapore stand at $12 billion with mineral fuels, chemical substances and equipment merchandise accounting for a sizeable chunk. Throughout the identical interval, Singapore’s exports to India reached new highs of $21.5 billion with a deal with shopper electronics, metals, mining and minerals and semiconductor items.

Let’s have a look at two areas the place Singapore can profit India — funding and innovation. Singapore has been the most important supply of overseas direct funding (FDI) into India. Bharti Airtel is one among India’s pioneering telecom majors. In 2002, as Airtel was beginning out, Singapore’s SingTel took a strategic stake in it to gasoline its progress. Right now, Airtel is a globally main telecom participant, a sworn statement to this stable partnership. DBS, a number one regional financial institution based mostly out of Singapore, has a community of greater than 530 branches in 19 Indian states — the most important overseas financial institution footprint within the nation. SATS Ltd, one of many world’s largest aviation companies participant, continues to put money into India as they opened their largest worldwide meals options facility in Bengaluru this 12 months.

Each Temasek and GIC have been very energetic in investing in India and plan to ramp up additional throughout sectors corresponding to monetary companies, well being care, infrastructure, know-how and sustainability. As India goals to develop world-class infrastructure and concrete planning, it will probably look to Singapore’s deep expertise on city growth for funding and inspiration. Singapore has presence in superior manufacturing capabilities that may profit India.

However, there are no less than three areas the place India has a lot to supply Singapore — well being care, inexperienced vitality and tourism. Because the city-state makes the push in the direction of More healthy SG, a nationwide initiative centered on preventive well being, it will probably leverage India for well-qualified, well-motivated well being care professionals, specifically nurses. The home impetus to cater to the well being care wants of billions has accelerated innovation within the sector, with India well-poised to take a technology-backed leapfrog. This might profit Singapore within the type of low-cost, high-quality diagnostics in addition to medical tourism alternatives. India has sizeable potential as a inexperienced vitality supply for Singapore sooner or later. Aside from promoting renewable electrical energy immediately, there are additionally different vitality sources which India can export, by means of hydrogen or ammonia. Tourism is one other important hyperlink which holds promise. Up to now in 2024, over 2.4 million Indians visited Singapore. Nonetheless, there’s large potential within the different route as properly since Singaporeans may discover India’s pure magnificence and vibrant tradition an attractive draw for his or her holidays.

Lastly, let’s develop this pondering additional into two areas of mutual profit to each nations — connection to Southeast Asia (SEA) and expertise trade. India-Singapore relationships are an integral a part of India’s broader relationships with Southeast Asia. Nations within the SEA area are forging alliances on digital financial system, intra-regional commerce and tourism, the place India generally is a strategic ally. For instance, Singapore and India have linked their respective digital cost methods, India’s Unified Funds Interface and Singapore’s PayNow. There may be potential for this to develop right into a regional on the spot cost system throughout SEA, facilitating seamless commerce. There may be important scope for data sharing by means of expertise trade between India and Singapore, clearly leveraging India’s deep technical expertise but in addition focused collaborations between high-quality greater training establishments on each side. Enterprise Singapore, a key authorities entity serving to Singaporean corporations develop abroad, allows bilateral trade in areas together with innovation, digital options, city options and cross-border know-how growth.

2025 will mark the sixtieth anniversary of diplomatic relations between India and Singapore. Within the wake of PM Modi’s go to, it’s time to take the ties between the international locations to the following stage. Earlier this 12 months, when Singaporean PM Lawrence Wong assumed workplace, he spoke about Ahead Singapore, his imaginative and prescient for “a refreshed Singapore Dream”, to stipulate the following chapter of the Singapore story. Concurrently, India is working in the direction of the purpose of Viksit Bharat — a imaginative and prescient to turn into a developed nation by 2047, when it marks 100 years of independence. Each international locations have formidable targets set by visionary leaders. Each additionally aspire to play a major function and solid standout affect throughout a multipolar world order beset by geopolitical fractures. It’s subsequently to the benefit of each nations to strengthen this partnership as they chase their particular person and collective aspirations.

Neeraj Aggarwal is chair, Asia Pacific, The Boston Consulting Group (BCG). He’s Indian and leads BCG’s Asia Pacific enterprise. Aparna Bharadwaj leads BCG’s International Benefit apply. She is a Singaporean of Indian-origin. The views expressed are private