India Singapore Trade

Singapore is the 2nd largest investor in India, with a cumulative FDI inflow of US$ 159.94 billion from April 2000-March 2024.

Introduction

India and Singapore share close ties with a history rooted in strong commercial, cultural, and people-to-people links across a millennium. Singapore is the leading source of FDI, among the largest sources of External Commercial borrowing and Foreign Portfolio Investment. It is the largest trade partner of India in the ASEAN region.

India-Singapore Trade.

• India was Singapore’s 12th largest trade partner, for the year 2021-22 with a share of 2.3% in Singapore’s overall trade.
• Singapore is India’s 8th largest trade partner and largest trade partner in ASEAN.
• Bilateral trade stood at US$ 35.58 billion in 2022-23, displaying a growth of 18% over 2021-22.
• Singapore is the 2nd largest investor in India, with a cumulative FDI inflow of US$ 153.39 billion from April 2000-September 2023.

Major exported items from India to Singapore with amount & quantity

• India exported 5,190 commodities to Singapore in FY23.
• India’s export to Singapore stood at US$ 11.99 billion in 2022-23.
• Major exported items from India to Singapore include petroleum products (US$ 4.72 billion), ship, boat, and floating structure (US$ 1.58 billion), pearl, precious and semi-precious stones (US$ 0.66 billion), gold and other precious metal jewellery (US$ 0.63 billion), electric machinery and equipment (US$ 0.61 billion), etc. in 2022-23.
• India’s export to Singapore stood at US$ 8.98 billion from April-December 2023.
• Major exported items from India to Singapore include petroleum products (US$ 4.29 billion), engineering goods (US$ 2.46 billion), organic and inorganic chemicals (US$ 670 million), gems and jewellery (US$ 495 million), electronic instruments (US$ 392 million) during April- December 2023.

Major imported items by India from Singapore with amount & quantity

• India imported 4,147 commodities from Singapore in FY23.
• India’s imports from Singapore stood at US$ 23.59 billion during 2022-23.
• Major items imported by India from Singapore include coal, coke, and briquettes (US$ 2.88 billion), ship, boat, and floating structure (US$ 2.72 billion), electronic components (US$ 2.29 billion), computer hardware, peripherals (US$ 1.95 billion), petroleum products (US$ 1.38 billion), organic chemicals (US$ 1.33 billion), etc. in 2022-23.
• India’s imports from Singapore stood at US$ 14.53 billion from April-November 2023.
• Major items imported by India from Singapore include electrical machinery and equipment and parts thereof (US$ 3.00 billion), petroleum products (US$ 2.37 billion), nuclear reactors, boilers, machinery, and mechanical appliances; parts thereof (US$ 2.24 billion), plastic and articles thereof (US$ 889 million), organic chemicals (US$ 888 million) from April- November 2023.

Economic Relations and Investments

• In the year 2022-23, bilateral trade stood at US$ 35.58 billion compared to US$ 21.98 billion during 2020-21. FDI equity inflows in India from Singapore reached US$ 5.22 billion during April-September 2023 and US$ 17.20 billion during 2022-23 compared to US$ 15.87 billion during 2021-22. Singapore continued to be the largest source of FDI into India, with FDI inflows of US$ 17.42 billion in 2020-21 despite the Covid situation. The cumulative FDI inflows from Singapore to India stood at US$ 153.39 billion (April 2000-September 2023).
• Singapore is also amongst the largest sources of External Commercial Borrowings for India and Foreign Portfolio Investment from Singapore has been extremely important for India. The top sectors attracting FDI Equity inflows from Singapore are the Services Sector, Computer Software & Hardware, Trading, Telecommunications, and Drugs & Pharmaceuticals.
• State governments are working with Singapore in the Smart Cities & Urban Rejuvenation as well as Skills Development initiatives. Singapore has established a Joint Committee with Maharashtra. There are regular visits of state delegations at various levels to Singapore. Ministers from Singapore also visit states in India.

Recent Trends & developments

• India and Singapore are looking at new growth drivers to propel their relationship for the next decade, Indian High Commissioner to Singapore Mr. P. Kumaran stated, asserting that the two countries have an "active calendar" of more than 20 bilateral mechanisms, dialogues and exercises being planned.
• On February 22, 2022, External Affairs Minister Mr. S. Jaishankar met Singapore Minister of Foreign Affairs, Dr. Vivian Balakrishnan on the sidelines of the EU Ministerial Forum on Indo-Pacific. Besides forum deliberations, they spoke about travel resumption, economic cooperation, and regional developments.
• On February 23, 2022, India and Singapore signed an MoU on Cooperation in the Fields of Science, Technology, and Innovation at the inaugural session of the India-Singapore Technology Summit 2022.
• ‘InSpreneur Connect’ was organised on March 3, 2022. Startups from various sectors including Edtech, Enterprise Solutions, Healthtech, Retailtech, and Sportstech, delivered their pitches during the event.
• The Indian Navy hosted the 29th edition of the Singapore-India Maritime Bilateral Exercise (SIMBEX) from October 26-30, 2022, at Visakhapatnam. SIMBEX-2022 has been conducted in two phases – the Harbour Phase at Visakhapatnam from October 26-27, 2022, followed by the Sea Phase in the Bay of Bengal from October 28-30, 2022. The exercise exemplifies the high level of cooperation between India and Singapore in the maritime domain. It also highlights the commitment and contribution of the two nations toward enhancing maritime security in the Indian Ocean Region.
• India invited Singapore to participate as a Guest Country in the G20 meetings and summits under India’s G20 Presidency in 2023.
• Prime Minister Mr. Narendra Modi and Prime Minister of Singapore, Mr. Lee Hsien Loong participated in the virtual launch of real time payment linkage between the Unified Payments Interface (UPI) of India and PayNow of Singapore. Governor of Reserve Bank of India, Mr. Shaktikanta Das, and Mr. Ravi Menon, Managing Director, Monetary Authority of Singapore made live cross-border transactions to each other using their respective mobile phones. Singapore is the first country with which cross border Person to Person (P2P) payment facility has been launched. This will help the Indian diaspora in Singapore and bring the benefits of digitalisation and FINTECH to the common man through instantaneous and low-cost transfer of money from Singapore to India and vice-versa.
• The Department of Administrative Reforms and Public Grievances, Ministry of Personnel, Public Grievances and Pensions, Government of India and The Public Service Division, of the Republic of Singapore signed a Protocol Document on 6th July, 2023, extending for five years the current MoU on Cooperation in the field of Personnel Management and Public Administration till 2028.The MoU was signed by Mr. V. Srinivas, Secretary on behalf of the Department of Administrative Reforms and Public Grievances and Mr Simon Wong, High Commissioner of Singapore to India. The MoU aims at strengthening the partnership between the two countries through various forms of cooperation between both countries’ Public Service officers.
• Admiral Mr. R Hari Kumar, Chief of the Naval Staff, Indian Navy was on an official visit to Singapore from 2-4 May, 2023. During the visit, the CNS co-officiated the inaugural ceremony of maiden ASEAN – India Maritime Exercise (AIME) 2023, held at Changi Naval Base, Singapore on 2 May, 2023. The ceremony was jointly inaugurated by Admiral R Hari Kumar and RAdm Sean Wat, Chief of Navy, Republic of Singapore Navy in the presence of senior dignitaries from other ASEAN nations. This inaugural edition of AIME was being co-hosted by the Republic of Singapore Navy and Indian Navy; and witnessed participation of ships and personnel from other ASEAN countries.
• Union Education and Skill Development Minister Mr. Dharmendra visited Singapore during 29-31 May, 2023 to strengthen existing ties and to explore the possibility for widening the scope of bilateral engagement in education and skill development. Mr. Dharmendra Pradhan met the Minister for Education, HE Mr. Chan Chun Sing. The Ministers had fruitful conversations on further strengthening of the bilateral cooperation and deepening engagements in all areas of education and skill development. Mr. Pradhan also explored ways in which Singapore can partner with India for seamlessly integrating skilling and vocational education starting from the school-level itself. Both the Ministers agreed to broaden the contours of the existing partnership through institutional mechanisms, particularly towards building capacities of teachers and trainers, incorporating future skills into education and skilling ecosystem as well as explore engagement with special schools, sport schools.

Conclusion

India-Singapore relations are based on various factors including economic opportunities, shared values and approaches, and convergence of interests on key issues. The two countries host regular political engagement. Defence relations are particularly strong. Economic and technological ties are extensive and growing. Cultural and human links are very vibrant. There are over 20 regular bilateral mechanisms, dialogues, and exercises.

There is also great convergence on a broad range of international issues. Both countries are members of a number of forums, including G20, Commonwealth, East Asia Summit, IORA (Indian Ocean Rim Association), and IONS (Indian Ocean Naval Symposium).

Contacts

• High Commission India, Singapore
  Address: 31, Grange Road, Singapore 239702
  Telephone: +65 6737 6777

Officials
Dr. Shilpak Ambule (High Commissioner)
Email: hc.singapore@mea.gov.in