Indo-Singapore Economic Relationship
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
Singapore is considered to be the India’s largest trading and investment partners in Association of South East Asian Nations. A close relationship between the two nations in recent years has given birth a dramatic growth in bilateral trade and investment linkages. A capital surplus economy like Singapore has become a good partner in India’s step towards infrastructure investments, technological progress and enhancement of export markets. [br]
Singapore is considered to be the India’s largest trading and investment partners in Association of South East Asian Nations. A close relationship between the two nations in recent years has given birth a dramatic growth in bilateral trade and investment linkages. A capital surplus economy like Singapore has become a good partner in India’s step towards infrastructure investments, technological progress and enhancement of export markets. [br]
For enhancing the relationship between the two nations, India-Singapore Joint Study Group (JSG) in 2002 was set up to look into the possibility of concluding a Comprehensive Economic Cooperation Agreement (CECA) between the two countries. The JSG in its report identified areas of increased economic engagement between the two countries and also recommended measures to be taken. Keeping the report of the JSG as a basis, negotiations between the two governments have commenced.
The major exportable items of India to Singapore in the year 2003 were Crude petroleum, Refined Motor spirit, Petroleum oils, Polished diamonds for jewellery, Polished industrial diamonds, articles of Jewellery, Aluminum Unwrought, Aluminium sheets, Parts & accessories of computers, Synthetic fabrics, Silk fabrics, Embroidery/Table linen of Man Made Fibres, Combed cotton, Knitted T-shirts, Vests, Benzene, Dyes, Acids, Insecticides, Fungicides, Household articles of stainless steel, Corrugated products of iron and steel, Forged/stamped articles of iron and steel, Bars and Rods of iron steel, Parts of Boring or Sinking machinery, X-ray tubes, Medical Surgical Dental or Veterinary instruments/ appliances, Penicillin, Rice, Sugar, Cashew nuts, Essential oil, Crabs live/dried, Fish (fresh/chilled/dried), Titanium ore, Menthol, Diesel/semi-diesel generating sets, Static converters, Valves/Taps Cocks for Pipes, Boilers, tanks etc, Bus/lorry tyres, Tobacco.
The major importable items of India from Singapore in 2003 were parts and accessories of Computers and Computer peripherals, Integrated Circuits, Cellular phones, CD Roms, Styrene, P-Xylene, O-Xylene, Polypropylene, Vinyl Acetate, Topped Crudes, Parts of boring and sinking machinery. Nickel, Tin (unwrought), lead (unwrought) Aluminium (unwrought) Zinc (unwrought), Waste & scrap of Iron and steel, Photographic chemicals, Sewing Machines, Ball/Roller bearings, Parts for bulldozers, Parts of Aero planes/Helicopters, Parts for Audio/Video recorders, Medical instruments and appliances, parts of cellular phones, parts of motor vehicles, Cigarettes, pigments, Parts of Cathode Ray Tubes, Auto parts, parts for electrical Machines & apparatus. These items in value terms constitute over 60 % of India’s imports from Singapore.
> Total trade between India and Singapore has been steadily increasing since 1999. The trade between India and Singapore increased by 3.22% (in 2001), to S$ 6.88 billion, and decreased by 1.16% (in 2002). By comparing the trade figures of 2003 with 2002, it is seen that total trade has gone up by 16.20%. India’s Imports from Singapore have increased by 14.22% and exports to Singapore by 21.25%.
Most of Singapore’s exports to India consist of re-exports, which constitutes slightly over 50% of Singapore’s exports to India.
Over a period of 5 years India’s imports from Singapore have increased by 26.88 %, whereas, during the same period India’s exports to Singapore have increased by 100.8 %. [br]
THE KEY ECONOMIC INDICATORS
The economic growth story in the economy is very fast and sustaining. The gross national income (GNI) of the economy has reached at current US $ 105.0 billion (Atlas method) in the year 2004. The GNI percapita has reached at current US $ 24,220.0 in the same year.
The value of Gross Domestic Product (GDP) has reached at current US $ 106.8 billion in the year 2004.
The average annual growth rate of GDP between 1965-1999 was at 8.6 percent. Real per capita GDP rose about eight-fold, from around S$4000 in 1965 to over S$32,000 in 1999.
Singapore’s economic performance compares better with that of the OECD countries over the same period, with GDP growth more than twice the OECD growth of 3.3%.
In the year 2003 the growth rate was declined to 2.5 percent and further increased to 8.4 percent to the year 2004.
The balance of trade has remained in favour of Singapore since 1999 but it is more or less fixed for the last five years in value terms (in S $). Indian exports to Singapore have been steadily increasing, growing in S$ terms by 48.8% (2000), 7.52% (2001) and 3.5% (2002), and 21.25% (2003).
Investment
Singapore has emerged amongst the top foreign investors in India. During the period January 1991 to May 2003, approvals for Foreign Direct Investment from Singapore to India (excluding NRI and euro issues/portfolio investment) amounted to Rs.53 billion (approx USD 1.2 billion,).
Some of the Government-Linked Corporations (GLCs) of Singapore’s projects include Ascendas’ Information Technology Park in Bangalore.The Government of Singapore Investment Corporation (GIC) has registered itself in India as an Financial Institutional Investors, and has committed Rs. 119 million in HDFC Ltd. Instead of investing in other stocks and equities.
Source: Indian High Commission, Singapore
