India’s Prime Minister Narendra Modi speaks prior to a meeting with Brunei Sultan Hassanal Bolkiah at Istana Nurul Iman in Bandar Seri Begawan on September 4, 2024.
Dean Kassim | Afp | Getty Images
SINGAPORE — India and Singapore on Thursday signed memorandums of understanding for cooperation on a number of key areas including semiconductors, digital technologies, skill development and health care.
The announcement comes during Indian Prime Minister Narendra Modi’s two-day visit to the Lion City, which began Wednesday following a trip to Brunei.
“Singapore and India have built strong foundations for an enduring partnership. The next phase of the Singapore-India partnership is very promising,” Singapore Deputy Prime Minister Heng Swee Keat said at the Singapore-India Forum organized by the Singapore-India Partnership Foundation, Institute of South Asian Studies and the Singapore Business Federation.
“Singapore, India and the rest of Asia must continue to strengthen on economic connectivity and integration, to allow for capital, ideas and talent to find their optimal uses,” he said.
Although South Asia continues to be the world’s fastest-growing region — and India the world’s fastest-growing major economy — the region is still playing catch up in terms of GDP per capita.
India’s GDP per capita currently stands at $2,730, significantly lower than that of the U.S. ($85,370), China ($13,140), Germany ($54,290) and Japan ($33,140), data from the International Monetary Fund showed. Those four economies are also the same ones the South Asian nation is currently trailing behind in terms of overall GDP.
“Singapore is not just a partner, it is an inspiration for every developing country. We want to create a bunch of Singapores in India,” Modi said in a meeting with Wong.
On Wednesday, Modi and Singapore’s Prime Minister Lawrence Wong visited Singaporean semiconductor and electronics company AEM, signaling their intent to increase cooperation in chips.
Increased collaboration can also help both nations overcome “common challenges” such as climate change, aging populations and public health, Heng highlighted.
Modi’s entourage also included Minister of External Affairs S. Jaishankar, National Security Advisor Ajit Doval along with other government officials.
In a post on X, Modi called Wong a friend and said, “We both agreed on the need to boost trade relations.”
The country is India’s sixth largest trading partner, with 3.2% share of India’s overall trade. Imports from Singapore in financial year 2024 amounted to $21.2 billion, while exports totaled $14.4 billion.
Asia’s biggest financial hub is also the largest source of foreign direct investments into India. Cumulative FDI inflows from Singapore to India stood at almost $160 billion from April 2000 to March 2024, amounting to almost a quarter of total FDI inflows to the South Asian nation.
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