SG's India Pivot: The New Rules of Economic Power

This deepening of ties is a calculated move, building upon the foundation of the Comprehensive Economic Cooperation Agreement (CECA) signed over two decades ago. The world has changed dramatically since 2005, and both nations recognize that words and frameworks must be backed by concrete outcomes. The ongoing India-Singapore Ministerial Roundtable (ISMR), initiated in 2022, has been instrumental in injecting new energy into the partnership, identifying forward-looking sectors ripe for collaboration.

The result is a partnership that is no longer just about trade agreements but about co-creating the infrastructure of the future. The focus on semiconductors, maritime links, and digital economies is a clear indication that both Singapore and India see their futures as deeply intertwined, banking on mutual strength to foster stability and prosperity across Asia. In a volatile global landscape, this doubling down on a critical relationship is seen by both sides as more important than ever.

This synergy is timely. India is on an ambitious mission to establish itself as a global semiconductor hub, driven by massive domestic demand from its electronics, automotive, and manufacturing sectors. The Indian semiconductor market, valued at $52 billion in 2024, is projected to exceed $103 billion by 2030. By partnering with Singapore's established ecosystem, Indian firms gain access to advanced manufacturing technologies and best practices, while Singaporean companies find new avenues for growth in a rapidly expanding market.

The initiative goes beyond mere production. The joint training center in Gujarat, a state rapidly emerging as a semiconductor manufacturing powerhouse, aims to address the critical need for skilled technicians and engineers. This focus on talent development ensures the long-term sustainability of the partnership, creating a robust talent pipeline that will support the entire semiconductor value chain, from design to assembly and testing.

Bilateral trade has flourished in parallel, growing from $6.7 billion in 2005 to over $34 billion in the 2024-25 fiscal year, making Singapore India's largest trading partner in ASEAN. This robust economic exchange is diversifying into new and ambitious areas. Discussions are underway for projects that could redefine regional connectivity, including the potential export of solar energy and green hydrogen from India to Singapore via an underwater cable that could also carry data.

This financial relationship is evolving from simple investment to strategic co-development. The establishment of a financial data regulatory "sandbox" at GIFT City in Gujarat is a testament to this, aiming to deepen linkages in the fintech sector. These initiatives demonstrate a shared vision for a future where economic partnership transcends traditional trade to encompass green energy, digital finance, and sustainable development.

This collaboration extends into new frontiers, including the space industry. India's proven strength in space technology, which has seen it launch multiple Singaporean satellites, presents a fertile ground for deeper cooperation. The partnership also encompasses a wide array of other future-oriented sectors, including artificial intelligence, biotech, and cybersecurity, reflecting a comprehensive approach to tackling modern challenges.

By working together, Singapore and India are not only securing their own economic futures but are also creating a powerful model for regional cooperation. Their joint efforts in developing resilient supply chains, fostering digital innovation, and promoting green energy provide a clear roadmap for navigating a complex global landscape, proving that shared interests and mutual trust can forge a path toward collective growth and stability.

Simultaneously, the collaboration is reaching for the stars, with the space industry identified as a key area for joint development. India, with its world-class space agency and proven track record of cost-effective satellite launches, offers a unique partnership opportunity for Singapore's advanced research and manufacturing base. India has already served as a launchpad for several Singaporean satellites, and this new roadmap aims to formalize and expand this cooperation. The goal is to move towards joint R&D projects, satellite manufacturing, and the development of space-based applications, combining Singapore’s expertise in precision engineering and data analytics with India’s robust launch capabilities.

The key challenge will be implementation—translating ambitious agreements into tangible projects and ensuring that the benefits of this high-level cooperation flow down to businesses and workers on the ground. The success of the joint semiconductor training center in Gujarat will be a critical early indicator, as a skilled workforce is the ultimate enabler of these high-tech ambitions. Furthermore, as both economies become more digitally integrated, establishing robust frameworks for cybersecurity and data governance will be paramount to sustaining trust and ensuring the seamless flow of information.

​Ultimately, the deepening of the Singapore-India relationship offers a compelling vision for the future of international partnerships. It is a move away from purely transactional relationships toward a more integrated model of co-development, where nations leverage their complementary strengths to build a more resilient and prosperous future for the entire region.