Mains Practice Questions

Introduction

The elevation of India-Singapore ties to a Strategic Partnership in 2015 underscores the growing importance of this relationship within India's 'Act East' policy. This policy aims to strengthen economic and strategic ties with Southeast Asian nations, and Singapore plays a pivotal role in this strategy.

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Strategic Importance of India-Singapore Relations:

• ASEAN Engagement: Singapore, as a key member of ASEAN, has been instrumental in fostering India-ASEAN relations.
  • From 2021-2024, Singapore served as the ASEAN Country Coordinator for India, during which India-ASEAN relations were upgraded to a Comprehensive Strategic Partnership.
  • This highlights Singapore's role as a bridge between India and ASEAN, aligning with the 'Act East' policy's objectives.
• Economic Cooperation: Singapore has emerged as a crucial economic partner for India in the region:
  • Trade: Singapore is India's largest trade partner in ASEAN.
  • Investment: Singapore was the largest source of FDI into India in FY 2023-24, with FDI equity inflows of USD 11.774 billion.
    • Cumulatively, Singapore accounted for 24% of total FDI inflows to India from April 2000 to March 2024.
• Connectivity: The relationship has fostered increased connectivity between India and Southeast Asia:
  • Digital Connectivity: Initiatives like the UPI-PayNow linkage, launched in February 2023, facilitate cross-border financial transactions.
  • Trade Connectivity: Projects like ONDC-Proxtera Connectivity and Trade Trust enhance trade facilitation.
• Maritime Security: Collaboration with Singapore enhances India's maritime presence and security in the critical sea lanes of the Indian Ocean and South China Sea.
  • The two countries conduct annual bilateral naval exercises, SIMBEX.
  • Strong ties with Singapore help India balance China's growing economic and military influence in Southeast Asia via the South China Sea.

Evolution of the Relationship Over the Past Decade:

• High-Level Engagements: The frequency and depth of high-level exchanges have increased significantly.
  • Notable examples include: Indian PM Modi's visits to Singapore in 2015, 2018, and his participation in various forums like the Shangri La Dialogue and Singapore Fintech Festival.
  • Establishment of the India-Singapore Ministerial Roundtable (ISMR) in 2022, involving multiple ministers from both sides.
• Economic Ties: The economic relationship has deepened and diversified:
  • Trade volume increased from USD 6.7 billion in FY 2004-05 to USD 35.6 billion in 2023-24.
  • About 9000 Indian companies are now registered in Singapore, while over 440 Singaporean companies are registered in India.
• Skill Development: The relationship has expanded to include skill development, with six skill center projects completed and two ongoing in various Indian states.
• Cultural and People-to-People Ties: Enhanced focus on cultural exchanges and diaspora engagement, as evidenced by regular cultural events and the conferment of the Pravasi Bharatiya Samman Award to a prominent Indian-origin business leader in Singapore.
• Multilateral Cooperation: Increased alignment in multilateral fora:
  • Singapore joined the International Solar Alliance in June 2023 and the Global Biofuel Alliance in September 2023.

Conclusion

The India-Singapore relationship has evolved into a multifaceted strategic partnership over the past decade, aligning closely with India's 'Act East' policy objectives. This relationship serves as a model for India's engagement with Southeast Asia and plays a crucial role in India's broader Indo-Pacific strategy.