The Hindu Editorial Analysis- 9th September 2024 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

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Prime Minister Modi visited Singapore during the second leg of a two-nation trip to South-East Asia, having travelled to Brunei Darussalam in the first leg.

India - Singapore Relations

Background

• In 1819, Sir Stamford Raffles established a trading station in Singapore along the Straits of Malacca route. This station eventually became a crown colony, governed from Kolkata until 1867.
• The colonial heritage is evident in various institutions and practices, the widespread use of English, and the significant Indian community in Singapore.
• India was among the first countries to recognize Singapore as an independent nation in 1965.
• During Prime Minister Modi's visit to Singapore in 2015, India and Singapore elevated their bilateral relations to a Strategic Partnership.

India-Singapore Ministerial Roundtable (ISMR) 

• The inaugural ISMR meeting occurred in September 2022 in New Delhi.
• The 2nd round of ISMR took place in Singapore in August 2024.
• Ministers reviewed the progress of the India-Singapore Strategic Partnership, focusing on Digitalization, Skills Development, Sustainability, and Healthcare & Medicine, as discussed in the first ISMR meeting.
• Two new pillars, Advanced Manufacturing and Connectivity, were added to enhance bilateral cooperation.

Trade and economic cooperation

• Singapore is the biggest trade partner of India in the ASEAN region.
• It is the top source of Foreign Direct Investment (FDI) for India.
• Singapore also ranks among the largest sources of External Commercial Borrowings.
• Additionally, it is a major contributor to Foreign Portfolio Investment in India.

Trade

• Bilateral trade increased significantly after the CECA was signed, growing from USD 6.7 billion in the fiscal year 2004-05 to USD 35.6 billion in 2023-24.
• As of 2023-24, Singapore ranks as India's 6th largest trade partner, contributing 3.2% to India's total trade.
• In the fiscal year 2023-24, India imported goods worth US$ 21.2 billion from Singapore, while it exported goods totaling US$ 14.4 billion to Singapore.

Investments

• Singapore was the top country for Foreign Direct Investment (FDI) into India in the fiscal year 2023-24.
• During this period, the FDI equity inflows from Singapore to India reached US$ 11.774 billion.
• From April 2000 to March 2024, the total FDI inflows from Singapore to India amounted to USD 159.943 billion, which represents 24 percent of all FDI inflows into India.
• In the fiscal year 2023-24, Indian investments going to Singapore were USD 4.872 billion.

Fintech cooperation

• Commercial and technical agreements have been established for the use of the RuPay card in Singapore.
• The UPI-PayNow Linkage marks a significant advancement in the realm of cross-border Fintech.
• Singapore is the first country where India has launched this cross-border Person-to-Person (P2P) payment service.

S&T Cooperation

• In the last decade, 17 satellites from Singapore have been launched from Indian territory.
• In April 2024, Singapore was a co-host for the first ASEAN – India Women Scientists Conclave.
• In July 2024, India and Singapore organized an e-workshop focused on digital health and medical technologies.

Multilateral cooperation

• Singapore became a member of the International Solar Alliance in June 2023.
• In September 2023, Singapore also joined the Global Bio-fuel Alliance.
• From 2021 to 2024, Singapore acted as the ASEAN Country Coordinator for India.
• During this time, the relationship between India and ASEAN was enhanced to a Comprehensive Strategic Partnership.
• Both India and Singapore are involved in international groups such as IORA, NAM, and the Commonwealth.

Indian Community

• Ethnic Indians make up about 9.1% of the total population in Singapore, which is around 3.5 lakhs out of 3.9 million residents.
• Tamil is one of the four official languages spoken in Singapore.
• Other languages like Hindi, Gujarati, Urdu, Bengali, and Punjabi are also taught in schools.

Key highlights of the visit

• Bilateral relations upgraded to a comprehensive strategic partnership
• During this visit, India and Singapore took a significant step by upgrading their diplomatic relations to a "comprehensive strategic partnership."
• Four Memorandums of Understanding (MoUs) signed
  • Collaboration in Digital Technologies
  • Partnership for the India-Singapore Semiconductor Ecosystem
  • Cooperation in Health and Medicine
  • Collaboration in Education and Skills Development
• Increase in trade and investment between the two nations
  • Leaders from both countries emphasized the need to boost trade and investment flows.
  • Prime Minister Modi noted that Singapore has invested around USD 160 billion in India, making it a key economic partner.
• Discussion on the outcomes of the 2nd India-Singapore Ministerial Roundtable
  • The two leaders reviewed the results of the 2nd India-Singapore Ministerial Roundtable that took place in Singapore in August 2024.
  • This roundtable is an important platform where senior ministers from both nations discuss and set new agendas for cooperation.
  • During the roundtable, six key areas for collaboration were identified:
    • Advanced Manufacturing
    • Connectivity
    • Digitalisation
    • Healthcare and Medicine
    • Skills Development
    • Sustainability
• The leaders talked about how to improve cultural connections between their countries.
• They also mentioned plans to celebrate the 60th anniversary of their diplomatic relations in 2025.
• Prime Minister Modi announced that India will open its first Thiruvalluvar Cultural Centre in Singapore.