India, Singapore Set to Finalise Pacts in Green Economy, Digitalisation

India and Singapore are poised to enhance their strategic partnership by finalizing around half-a-dozen ambitious agreements focusing on green economy, digitalisation, energy, food security, and healthcare. These agreements are expected to be sealed at the forthcoming India-Singapore Ministerial Roundtable (ISMR), scheduled to take place in Singapore around September-October. This initiative underscores a mutual commitment to bolster cooperation within the first 100 days of the formation of a new government in India.

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The inaugural ISMR meeting, which was held on September 17, 2022, in Delhi, laid the groundwork for these discussions. It highlighted key areas such as digital connectivity, fintech, green economy, green hydrogen, skill development, and food productivity as focal points for deepening bilateral ties. Additionally, both nations are exploring potential collaborations in the semiconductor sector.

Singapore has emerged as a crucial trading ally for New Delhi, accounting for approximately 23% of India's foreign direct investment (FDI) equity inflows since 2000. With both countries gearing up to celebrate 60 years of diplomatic relations next year, there is anticipation of new initiatives to further strengthen their ties.

Given the strategic significance of Singapore within the ASEAN (Association of Southeast Asian Nations) bloc, India views it as a vital partner in countering China's growing economic and military influence in the Indo-Pacific region. The upcoming agreements aim to enhance cooperation across various sectors including digitalisation, clean energy, food security, and skill development.

The second ISMR meeting in Singapore will see participation from key Singaporean ministers. Notably, Lawrence Wong has recently assumed office as Singapore's Prime Minister, succeeding Lee Hsien Loong. This transition marks a new chapter in Singapore's leadership and its international collaborations.

India's interest in expanding defence cooperation with Singapore, particularly in the maritime domain, is also evident amidst growing global concerns over China's territorial claims in the South China Sea. Both nations advocate for a peaceful resolution of disputes and adherence to international law, emphasizing the UN Convention on the Law of the Sea (UNCLOS).

The economic relationship between India and Singapore has witnessed significant growth recently. The launch of the PayNow-UPI linkage in February last year exemplifies this progress by facilitating cheaper and faster cross-border payments and remittances between the two countries. This initiative represents India's first cross-border real-time payment systems linkage and highlights Singapore's role as a key financial hub for Indian businesses.

Singapore stands as India's largest trade partner within ASEAN and a major source of FDI. The city-state also plays a pivotal role in India's external commercial borrowings and foreign portfolio investments. With over 80% of listed offshore bonds by Indian issuers listed on the Singapore Stock Exchange (SGX), and significant investments from Temasek Holding and other Singapore-based investors in India's infrastructure and portfolio, the economic ties between these two nations are set for further expansion following the upcoming ministerial roundtable.