Indian Council of World Affairs

Abstract: Celebrating 60 years of India-Singapore diplomatic relations, established in 1965, the state visit of President Tharman Shanmugaratnam to India in January 2025, offered an opportunity to reflect on their historical ties, major achievements and growing partnership in the evolving global landscape. 

Introduction:

The state visit of Mr. Tharman Shanmugaratnam, President of the Republic of Singapore to India in January 2025, marked the commencement of the celebrations of the 60th anniversary of India-Singapore diplomatic relations that was established in 1965, following Singapore's independence from Malaysia. During his ceremonial visit, the President stated that “the natural partnership between our countries is on a new trajectory,” reflecting its continued evolution towards a future-ready partnership that now includes the economic, digital technologies and defense spheres.[i]

Prime Minister Narendra Modi’s visit to Singapore in September 2024, however, had set the stage for the milestone year by elevating bilateral relations to a higher level from a strategic partnership in 2015 to comprehensive strategic partnership in 2024.[ii] Building on this elevated partnership, the shift has witnessed remarkable developments in key areas such as in defense and strategic cooperation, economic growth and advancements in technology. As the anniversary year unfolds, the deepening bilateral ties reflect not only a celebration of the past but also a commitment to shaping a dynamic future together.

This commitment to a dynamic future together has been the driving force behind the deepening India-Singapore defense and strategic partnership, which has evolved significantly since the launch of the Singapore-India Maritime Bilateral Exercise (SIMBEX) in 1994, marking the beginning of their strategic military engagement. The 2003 Defense Cooperation Agreement (DCA) and the Annual Defense Policy Dialogue (2004) established the ground for regular high-level discussions and strengthening strategic coordination. In 2007, India invited Singapore to join MALABAR, a traditionally bilateral India-U.S. naval exercise, alongside Australia and Japan, reflecting Singapore's growing role in regional security. The renewal of the DCA in 2009 expanded cooperation, granting the Singapore Armed Forces (SAF) greater access to Indian firing ranges at Kalaikunda Air Base in West Bengal for training and stationing personnel. 

The partnership was then elevated to a Strategic Partnership in 2015, and in 2016, the India-Singapore Defence Ministers’ Dialogue (DMD) was institutionalized.[iii] A significant agreement was the 2018 Mutual Coordination, Logistics, and Services Support for the Navies of India and Singapore, granting Indian Navy ships logistical support at Changi Naval Base.[iv] This partnership was reaffirmed in 2024 with a routine port call by Indian vessels at Changi port during their South China Sea deployment.

Beyond defense, India-Singapore ministerial roundtable (ISMR) inaugural meeting in 2022 marks Singapore's inclusion in India’s Ministerial Dialogue framework, strengthening their multifaceted partnership with pillars such as advanced manufacturing and connectivity.[v] Complementing these bilateral efforts, Singapore has also been a key advocate for India's engagement with ASEAN, actively supporting its inclusion in regional forums such as the ASEAN Defence Ministers' Meeting + (ADMM+), ASEAN Regional Forum (ARF) and the East Asia Summit (EAS).

On a multilateral front, both countries collaborate through platforms such as the Indo-Pacific oceans initiative (IPOI) , Indian ocean rim association (IORA) and the Indo-Pacific Economic Framework for Prosperity (IPEF) to tackle a host of global challenges, including climate change and the supply chain resilience. This collaboration is rooted in their shared vision for the region, where India’s Indo-Pacific vision, Singapore’s vision of the Indo-Pacific, and ASEAN’s Outlook on the Indo-Pacific align on key principles such as ASEAN centrality, a free, open, rules-based regional order and converge on working towards enhanced maritime security, economic connectivity and sustainable development.

Beyond defense and strategic cooperation, economic collaborations have played a significant role in India-Singapore ties, with the Comprehensive Economic Cooperation Agreement (CECA) of 2005 playing an important role in driving growth and investment. CECA has boosted bilateral trade from US$6.7 billion in 2004-05 to US$30.11 billion in 2021-22, while also fostering collaboration in emerging fields such as renewable energy and digital finance.[vi] The key highlights of this collaboration include the joint ventures in solar power projects and the integration of India’s Unified Payments Interface (UPI) with Singapore's PayNow system which has made cross-border transactions more efficient. Initiatives like ONDC-Proxtera connectivity (enables international B2B exports), GIFT Connect (cross-border initiative connects India and Singapore's Capital markets), and TradeTrust (enables banks to use digital Bills of Lading (eBLs) for faster, more secure Letter of Credit transactions) further illustrate the synergy between Singapore's status as a financial hub and India's growing digital economy.[vii]

This strong economic collaboration is also reflected in trade, with Singapore emerging as India’s largest trading partner in ASEAN.[viii] Bilateral trade has grown from $4.2 billion in 2003-04 to $35.6 billion in 2023-24, making Singapore India's sixth largest trading partner.[ix]

Prime Minister Narendra Modi has aptly referred to Singapore as an "incubator" for India's "laboratory" of new business models.[x] Currently, over 440 Singaporean companies are thriving in India, taking advantage of various government incentives. At the same time, Indian companies view Singapore as a strategic hub for foreign direct investment (FDI) with more than 80% of Indian offshore bonds listed on the Singapore Stock Exchange.

Since 2018-19, Singapore has been the largest source of FDI for India, contributing to a cumulative investment of $167.47 billion Over the past 25 years - accounting for a quarter of India’s total FDI inflows.[xi][xii][xiii] With Singapore emerging as a key investor, economic ties have laid a strong foundation for future-focused cooperation. 

Building on this momentum, both nations are now deepening their engagement in technology, innovation, and skill development, driven by high-level visits that have been instrumental in transforming the India-Singapore relationship. In 2018, PM Modi’s visit led to renewal of CECA and new agreements in fintech including the launch of RuPay cards and the Bharat Interface for Money (BHIM app) in Singapore and the India-Singapore Entrepreneurship Bridge (InSpreneur) to foster business connections, highlighting Singapore's role as India's gateway to the ASEAN region.[xiv] The 2022 visit expanded the partnership in renewable energy and urban development. The latest 2024 visit was particularly significant due to India's collaboration with Singapore's AEM company to boost India’s semiconductor ecosystem and supply chain resilience.

The partnership between India and Singapore is largely driven by their mutual emphasis on technological innovation and skill development. A significant highlight of this collaboration is the establishment of a green hydrogen corridor, featuring key hubs in Paradeep, Odisha and Tuticorin, Tamil Nadu. Singapore’s recent membership in the Global Biofuel Alliance and International Solar Alliance (ISA), exemplifies the shared vision on sustainable development.

As part of the “One Sun, One World, One Grid" (OSOWOG) initiative of ISA, India is actively discussing on a proposed project to link power grids between India and Singapore via an undersea cable passing through the Andaman and Nicobar Islands, fostering cooperation in clean energy.[xv] In terms of investments in skill development, they have established numerous centers across India, notably in states like Himachal Pradesh, Delhi, Rajasthan, Assam, Odisha and Telangana. More centers are in the pipeline for Madhya Pradesh and Gujarat.

Conclusion

Building on a strong foundation, India and Singapore have significant potential to deepen collaboration across various sectors, with India actively focusing on key areas such as education, skill development, urban planning, sustainable infrastructure, digital governance, and economic growth. As part of this effort, In line with Sustainable Development Goal 4.3 and the National Education Policy 2020, India has been prioritizing vocational training and aligning workforce skills with economic demands to support its growing industries. With emerging sectors like AI and semiconductors gaining prominence, collaboration between India and Singapore in skill development can create new opportunities for knowledge exchange, innovation, and economic growth. At the same time, as India’s urban population is projected to reach 600 million by 2036, the opportunities for collaboration between the two countries emerge in smart infrastructure, public transport, and environmental management that can enhance sustainability and urban resilience.

While an imbalance in business participation remains a challenge, it also presents an opportunity for enhancing economic engagement. Nearly 8,000 Indian companies operate in Singapore, only 440 Singaporean companies have a presence in India, highlighting the gap between proposed initiatives and actual implementation.[xvi] As India continues to enhance its ease of doing business, there is growing potential for greater reciprocity and deeper economic integration, opening up new opportunities for collaboration between the two countries. The path forward lies in leveraging their complementary strengths to unlock new opportunities and drive mutual growth. This burgeoning partnership is exemplary and has been made possible despite the huge differential in the size, population and needs of two countries and lends credence to India's foreign policy approaches towards the big and small alike.

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*Jinde Aishwarya, Research Intern, Indian Council of World Affairs, New Delhi
Disclaimer: Views expressed are personal. 

Endnotes

[i].  Anjali Raguraman. 2025. “Singapore and India’s ‘Natural Partnership’ on New Trajectory: President Tharman.” The Straits Times. January 16, 2025.

[ii].  “India-Singapore Joint Statement during the Visit of Prime Minister Shri Narendra Modi to Singapore (September 04-05, 2024).” 2024. Ministry of External Affairs, Government of India. September 5, 2024.

[iii].  Singh, Sinderpal & Rahman, Syeda. (2010). India-Singapore Relations: Constructing a "New" Bilateral Relationship. Contemporary Southeast Asia: A Journal of International and Strategic Affairs. 32. 70-97. 10.1353/csa.0.0083. 

[iv].  “List of MoUs Signed between India and Singapore during Visit of Prime Minister to Singapore.” 2018. Mea.gov.in. June 1, 2018.

[v].  “2nd Round of India-Singapore Ministerial Roundtable.” 2024. Mea.gov.in. August 26, 2024.

[vi].  “India - Singapore Bilateral Trade & Investment.” n.d. High Commission of India, Singapore.

[vii].  “India - Singapore Relations.” 2024. High Commission of India, Singapore. December 2024.

[viii].  Ministry of Commerce & Industry. 2024. “Commerce and Industry Minister Piyush Goyal to Attend 2nd India Singapore Ministerial Roundtable in Singapore.” Pib.gov.in. August 25, 2024.

[ix].  Ibid.

[x].  Ministry of External Affairs, Government of India. 2015. “Speech by Prime Minister at India-Singapore Economic Convention (November 24, 2015).” Mea.gov.in. November 24, 2015.

[xi].  PTI. 2024. “India Receives Highest FDI from Singapore in 2023-24; Mauritius Second Biggest Investor: Government Data.” The Hindu, June 2, 2024, sec. Economy.

[xii].  Briefing, India. 2025. “Profiling India-Singapore Trade and Investment Trends.” India Briefing News. January 15, 2025.

[xiii].  Ibid.

[xiv].  2018. “India-Singapore Joint Statement during Visit of Prime Minister to Singapore (June 01, 2018).” Mea.gov.in. June 1, 2018.

[xv].  Tarun Karthick. 2023. “India & Singapore Plan to Link Power Grids via Undersea Cable Passing through Andaman and Nicobar Islands - Nicobar Times.” Nicobar Times. August 1, 2023.
[xvi].  “India - Singapore Bilateral Trade & Investment.” n.d. High Commission of India.