India Enhancing Economic Relations with Singapore Amid Regional Challenges

India and Singapore’s trade ties are strengthening rapidly, with the second edition of the India-Singapore Ministerial Roundtable (ISMR) held in Singapore on August 26

India and Singapore’s trade ties are strengthening rapidly, with the second edition of the India-Singapore Ministerial Roundtable (ISMR) held in Singapore on August 26. The meeting focused on trade and economic cooperation between the two nations ahead of PM Narendra Modi’s September 4-5 visit. Finance Minister Nirmala Sitaraman led India’s delegation, deliberating on six priority pillars for the bilateral partnership in emerging areas. While bilateral political coordination and economic engagement are growing, India must rethink its trade policies and forgo protectionist measures to integrate better with global value chains and tap into Southeast Asian markets. Singapore is India’s sixth largest trading partner, with a total trade of $35.61 billion, accounting for 29% of India’s total trade with ASEAN.

India’s economic reforms and ‘Look East Policy’ have led to a new framework for cooperation with Southeast Asian countries, including the Comprehensive Economic Cooperation Agreement (CECA) between India and Singapore in 2005. With over 20 active bilateral engagements and an India-ASEAN Free Trade Agreement (FTA) in Goods, Singapore is crucial in enhancing India’s participation in regional supply chain arrangements. However, it remains to be seen if India and Singapore have fully realized their trade potential. To do so, India must address protectionist policies, enhance service sector access, and explore broader Southeast Asian trade opportunities. By doing so, India can fully leverage regional economic integration and strengthen its trade ties with Singapore.