• UGI USER
  • Aug 26, 2024
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2ND EDITION OF INDIA-SINGAPORE MINISTERIAL ROUNDTABLE (ISMR)

Why in the News?

  • Ministerial Roundtable: The 2nd edition of India-Singapore Ministerial Roundtable (ISMR) is planned in Singapore on 26 August which focuses on enhancing Trade and Economic Cooperation between the two nations.
  • High-Level Representation: On the Indian side four Union Ministers are participating in the meeting in which they will interact with Singaporian counterparts to discuss bilateral business agenda.
Source: India Briefing

Review of Economic Cooperation

  • Review of Relations: ISMR offers an opportunity to upgrade the dynamic India-Singapore strategic partnership further, with the first session having taken place in September 2022.
  • Trade Significance: Singapore is an important trading partner since it is the largest source of FDI for India for the financial period 2023-24 ($11. 77 billion in investments).

Note: Singapore is now India’s sixth largest trading partner in the world.

Year 2023-24
FDI from Singapore

(Bn)

 $ 11. 77
Total Trade Value 

(Bn)

 $35.61
India’s Exports

(Bn)

 $14.41
India’s Import

(Bn)

 $21.2

 
Analysis of Trade and Economic Relationship between India and Singapore

Major Trade Partner:

  • Singapore is one of India’s largest trading and investment partners in ASEAN constituting approximately 27%.
  • This is only three per cent of the total Indian trade with ASEAN in 2021-22.

Leading FDI Source:

  • Among all the countries, Singapore is the largest FDI partner of India, investing about $136 in total.
  • $ 653 billion in the last two decades to hold 22.85% of the actual FDI received in India .
  • CECA Agreement: The trade relations between India and Singapore are regulated by the Comprehensive Economic Cooperation Agreement (CECA) signed 2005 but came into operation later on.
  • Collaborative Initiatives: Post-liberalization, both India and Singapore have established numerous forums to enhance the head and heart of trade and investment such as India-Singapore Business Forum and India- Singapore CEOs Forum.
  • Payment Integration: The linking of PayNow with India’s Unified Payments Interface (UPI) in February 2023 will enhance the speed of cross-remittance between nations.

Associated Article:

https://universalinstitutions.com/india-singapore-relations/