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Source: The post India and Singapore are strengthening their economic and trade relationships has been created, based on the article “The India–Singapore economic corridor is looking up” published in “Live mints” on 12th January 2024.
UPSC Syllabus Topic: GS paper2-International relation- Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests
News: This article explains how India and Singapore are strengthening their economic and trade relationships.
What is India’s economy situation?
Fastest Growing Large Economy: India is the world’s fastest-growing large economy, projected to move from fifth to third in global economic size by 2030.
Strong Fundamentals: India’s robust economic fundamentals are attracting significant global investments.
Global Influence: India’s economy is poised to drive a fifth of global growth by 2031, reflecting its significant global impact.
What initiative are taken for strengthening economic and trade relationships between India and Singapore?
Comprehensive Economic Cooperation Agreement: Signed in 2005, this agreement significantly boosted bilateral trade, which quadrupled to reach $35.6 billion by 2022-23.
100% FDI Policy in India: India’s policy allowing 100% Foreign Direct Investment in most manufacturing sectors attracted numerous Singaporean conglomerates and institutions to ramp up investments in India.
Growth of Indian Companies in Singapore: From 2014 to 2023, the number of Indian companies in Singapore increased from 6,000 to over 9,000, covering diverse sectors like tourism, telecommunications, financial services, and e-commerce.
Unified Payments Interface (UPI)-PayNow Linkage: Launched in 2023, this is the first real-time payment systems linkage in the world, facilitating easier and faster financial transactions between the two countries.
Trade Trust Framework: Introduced in 2023, this framework utilizes blockchain technology for electronic Bills of Lading, enhancing efficiency in trade finance transactions between Singapore and Indian entities.
Focus on Renewable Energy: India’s renewable energy initiatives, with 92% of its 2022 power capacity growth from renewables, attract interest from Singapore for investment and sourcing.
How does this partnership affect global trade and Investment?
Global Trade Influence: The India-Singapore economic corridor is influential in shaping global trade and investment patterns.
Leadership on the Global Stage: India, with Singapore as a key ally, is increasingly influential in global economic and political matters, such as its role in the G20.
Question for practice:
Discuss the key initiatives taken to strengthen the economic and trade relationships between India and Singapore.
