Summary: The bilateral relationship between India and Singapore stands as a testament to the power of strategic partnership and economic cooperation in an era marked by shifting geopolitical dynamics across the Indo-Pacific. It reached a significant milestone during Prime Minister Narendra Modi’s visit to Singapore in September 2024 when both countries agreed to elevate bilateral relations to a higher level of a Comprehensive Strategic Partnership. Singapore Prime Minister Lawrence Wong’s recent visit to India in early September 2025, marks a watershed moment in bilateral relations, coinciding with the 60th anniversary of India-Singapore diplomatic relations and SG60. During his historic visit, Prime Minister Wong announced a new MoU on space collaboration, the leaders agreed to a time-bound review of the CECA and India’s free trade pact with ASEAN. The visit also culminated in a major infrastructure milestone. Read on to know more.
Introduction
In an era marked by shifting geopolitical dynamics and evolving trade patterns across the Indo-Pacific, the bilateral relationship between India and Singapore stands as a testament to the power of strategic partnership and economic cooperation. What started as connections rooted in shared colonial history has blossomed into one of Asia’s most comprehensive partnerships, spanning trade, investment, defence, technology, and cultural exchanges.
The relationship reached a significant milestone during Prime Minister Narendra Modi’s visit to Singapore in September 2024 when both countries agreed to elevate bilateral relations to a higher level of a ‘Comprehensive Strategic Partnership’. Singapore is at the heart of India’s Act East Policy. This evolution demonstrates how the middle powers can leverage their complementary strengths to enhance regional stability and prosperity in the Indo-Pacific.
The Economic Foundation: Transformative Impact of the Comprehensive Economic Cooperation Agreement (“CECA”)
A cornerstone of the India-Singapore economic relations is the CECA, signed in 2005. This groundbreaking agreement marked Singapore’s first comprehensive economic accord with a South Asian nation, thereby setting a precedent for future regional cooperation. The numbers tell a compelling story of success. CECA has successfully phased out tariffs on 81% of Singapore’s exports to India, spanning across electronics, mechanical appliances, pharmaceuticals and food sectors.
Meanwhile, Indian businesses benefit from lower costs when importing goods from Singapore, with 93% of Indian imports enjoying reduced or zero tariffs on essential items such as automotive parts, machinery, construction materials, and financial services. Bilateral trade expanded after the conclusion of CECA from USD 6.7 billion in FY04-05 to USD 34.3 billion in 2024-25 – a remarkable five-fold increase that underscores the agreement’s transformative impact.
Singapore & India: The Investment Flows
The investment relationship has been equally impressive. Singapore remains India’s top FDI source for the seventh consecutive year, contributing nearly USD 15 billion in fiscal year 2024-25, a significant portion of India’s record USD 81.04 billion total. Even more striking, the cumulative FDI inflows from Singapore to India stood at USD 174.88 billion (April 2000- March 2025), which is 24% of the total FDI inflows into India.
Strategic Evolution: Comprehensive Strategic Partnership (“CSP”) 2024 & The Eight Pillars of Cooperation
The elevation to CSP in September 2024 represents a qualitative leap in bilateral relations. This framework extends far beyond traditional economic cooperation, encompassing eight comprehensive pillars that address contemporary challenges while positioning both countries for future opportunities.
The Ministers reviewed progress of the India-Singapore strategic partnership, particularly under the pillars of digitalisation, skill development, sustainability, healthcare & medicine, as identified during the first meeting of the India Singapore Ministerial Roundtable (“ISMR”) in 2022. Two new pillars of advanced manufacturing and connectivity were added to the mix ——.
Technology and Innovation: Building the Future Together
The Semiconductor Partnership
The technology partnership has emerged as a critical pillar, particularly in semiconductors and emerging technologies. Both Prime Ministers welcomed the signing of the Memorandum of Understanding (“MoU”) on India-Singapore semiconductor ecosystem partnership during Prime Minister Modi’s September 2024 visit. As part of efforts to help India emerge as a semiconductor hub, Singapore is backing a “green lane” for semiconductor goods, to facilitate the supply of raw materials and equipment while fostering closer collaboration between both ecosystems to facilitate exchange and harmonise standards.
Digital Innovation and Green Initiatives
The partnership extends to cutting-edge digital cooperation. Both Prime Ministers welcomed the MoU on digital technology cooperation and affirmed shared interests in data, AI and cybersecurity. A notable achievement is the UPI-PayNow linkage, through which Singapore became the first nation with which India has established a cross-border person-to-person payment facility.
Singapore has also shown its commitment to tackling global challenges like climate change by joining the International Solar Alliance (June 2023) and Global Bio-fuel Alliance (September 2023). Further, Singapore and India signed a Letter of Intent this year to collaborate on maritime digitalisation and decarbonisation projects, including identifying relevant stakeholders who could contribute to the effort and work towards formalising the partnership through a MoU on a green and digital shipping corridor.
Prime Minister Wong’s Debut Visit to India: A New Chapter in Bilateral Ties
Prime Minister Lawrence Wong’s recent visit to India as Prime Minister of Singapore, in early September 2025, represents a watershed moment in bilateral relations, coinciding with significant anniversaries and yielding substantial outcomes. This visit of Prime Minister Wong, which coincided with the 60th anniversary of India-Singapore diplomatic relations and SG60, reaffirms the continued commitment of both countries to further strengthening their partnership.
Key Engagements & Outcomes
During his historic visit, Prime Minister Wong announced a new MoU on space collaboration, noting that more than 20 Singapore-made satellites have been launched by India. The leaders demonstrated their commitment to enhancing economic ties by agreeing to a time-bound review of the CECA and India’s free trade pact with ASEAN, to accelerate trade and investment flows between the nations.
During Prime Minister Wong’s visit, India’s external affairs minister S. Jaishankar also discussed the strengthening of India-Singapore ties, marking a significant moment in the diplomatic calendar as both nations celebrate six decades of partnership. Prime Minister Modi highlighted Singapore’s role in semiconductor research, investments in GIFT City and support for setting up a National Centre of Excellence for Skilling in Chennai, while also noting Singapore’s support for India’s skill development in the semiconductor arena, including discussions on a joint skills training centre for semiconductors in Gujarat. In a significant development for digital connectivity, Prime Minister Modi announced that 13 new Indian banks have joined the UPI-PayNow cross-border payment system and confirmed that the next India-Singapore Hackathon will take place later this year, further strengthening technological cooperation between the two nations.
The visit also culminated in a major infrastructure milestone when both Prime Ministers inaugurated a new container terminal at Mumbai’s Nhava Sheva port virtually. This project has seen an investment of over USD 1 billion by the Port of Singapore Authority (PSA International), demonstrating Singapore’s confidence in India’s economic growth trajectory and the tangible benefits of their strategic partnership.
Looking Ahead: A Win-Win Partnership & Model for Regional Cooperation
As a gateway to Southeast Asia, Singapore offers Indian businesses access to ASEAN markets and serves as a regional hub for operations. About 9,000 Indian companies are registered in Singapore, demonstrating the country’s role as a platform for Indian businesses’ regional expansion. The skill development component has been particularly impactful. Skill centre projects with public and private support have been completed at six locations (Himachal Pradesh, Delhi, Rajasthan, Assam, Odisha and Telangana) and two projects (Madhya Pradesh and Gujarat) are ongoing. As part of the proposal for data connectivity, the two sides have created a financial data regulatory “sandbox” at Gift City, Gujarat.
For Singapore, the partnership with India provides access to one of the world’s largest and fastest-growing markets. Experts attribute Singapore’s prominence as a global financial centre, its strong bilateral relations with India, and its role as a conduit for global private equity and venture capital as key factors driving these investments. The relationship also enhances Singapore’s strategic relevance in the region.
The India-Singapore partnership has evolved into a comprehensive, multi-sectoral engagement that delivers lasting benefits to both nations and contributes to regional stability and prosperity. This relationship exemplifies how strategic partnerships can adapt and thrive in changing global circumstances while maintaining their core foundations of trust and mutual benefit. Looking ahead, the partnership is well-positioned to address emerging challenges and opportunities. The focus on building resilient technology supply chains, developing green energy corridors, enhancing financial integration, and maintaining strong regional strategic alignment provides a robust framework for future cooperation.
The India-Singapore partnership serves as a beacon for meaningful cooperation in the Indo-Pacific, demonstrating that when nations align their strategic interests with practical cooperation, the results can be transformative for both the countries and the broader region. As both nations continue to navigate an increasingly complex global landscape, their partnership stands as proof that strategic cooperation, built on trust and mutual benefit, remains one of the most powerful tools for achieving shared prosperity and regional stability.
For further information, please contact:
Varun Kalsi, Cyril Amarchand Mangaldas
varun.kalsi@cyrilshroff.com
