India’s trade with Singapore has edged up only modestly over the past decade, but the investment relationship has grown into one of the strongest pillars of bilateral engagement. Singapore is now India’s single-largest source of foreign direct investment (FDI), accounting for nearly a third of total inflows in recent years.
During Prime Minister Narendra Modi’s meeting with his Singaporean counterpart Lawrence Wong on September 4, the two sides signed five agreements to strengthen cooperation. They also agreed to fast-track the review of the India–Singapore Comprehensive Economic Cooperation Agreement (CECA) and the ASEAN Trade in Goods Agreement (ATIGA). A refreshed CECA is expected to help narrow trade imbalances while opening new sectors for collaboration.
Exports to Singapore stood at $12.9 billion in FY25, up from $9.8 billion in FY15—an increase of just over 30 percent, compared with a 40 percent rise in India’s overall exports during the same period. Imports, however, have grown faster, climbing from $7.1 billion in FY15 to $21.3 billion in FY25, leaving India with a widening trade deficit. While electricals, machinery, and plastics dominate the import basket, it has diversified in the last decade.
Although there is no arms trade between the countries, defence partnerships seems to be on the cards. Singapore backed India’s interest in the Malacca Straits Patrol.
“Singapore acknowledges with appreciation India’s interest in the Malacca Straits Patrol,” the joint statement read, as the two countries also reaffirmed their commitment to continue military cooperation.
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