India-Singapore relations

Category: International Relations

India-Singapore relations

Historical Ties

India and Singapore have forged a robust bond over centuries, characterized by deep cultural, economic, and strategic links. Historically, the presence of Indian traders and settlers in Singapore has contributed to its diverse cultural fabric, creating a unique amalgamation of Indian and local influences. Today, the Indian community in Singapore, which comprises over 500,000 individuals, plays a vital role in the nation’s economy and cultural identity. Festivals like Diwali and Vaisakhi are celebrated with great enthusiasm, showcasing the rich heritage that Indian culture brings to the island nation.

Strategic Partnership Develops

After gaining independence in 1965, Singapore faced significant challenges, particularly threats from communist influences supported by China and concerns about regional dominance by neighboring countries like Malaysia and Indonesia. In this context, Singapore identified India as a strategic ally, viewing the South Asian nation as a counterweight to growing Chinese assertiveness. This partnership was not merely a political maneuver; it represented a mutual desire for regional stability and security, and it allowed both nations to navigate the complexities of the geopolitical landscape in Southeast Asia.

Commercial Engagement

Singapore's historical significance as a crucial trading hub meant that it provided India with essential access to the Far East markets. This strategic importance only grew during the late 20th century, driven partly by India's economic liberalization in the 1990s. The relationship blossomed, particularly when Singapore became one of the first countries to embrace India's "Look East" Policy, designed to bolster its economic, cultural, and strategic engagement with Southeast Asian nations. This initiative not only reinforced India’s standing in the region but also facilitated a substantial increase in bilateral trade and investment between the two countries.

Modern Developments

In contemporary times, India and Singapore have continued to strengthen their multifaceted relationship. The two countries engage in extensive collaboration across various sectors, including defense, technology, and education. Regular high-level visits and dialogues reflect the ongoing commitment to enhancing their partnership, particularly in light of emerging global challenges. Furthermore, initiatives such as the Comprehensive Economic Cooperation Agreement (CECA) have significantly boosted bilateral trade, demonstrating the growing interdependence of the two nations in an increasingly globalized economy.

In summary, the relations between India and Singapore are deeply rooted in their shared history, mutual strategic interests, and a commitment to fostering economic growth. As both nations look towards the future, they remain poised to navigate the evolving geopolitical landscape together, with the potential for even further integration and cooperation in various domains.

Development of Bilateral Relations

Diplomatic relations between India and Singapore commenced on 24 August 1965, a mere fifteen days following Singapore's independence. This early establishment set the foundation for a robust bilateral relationship, characterized by high-level interactions and mutual respect. In the years immediately succeeding independence, Singapore's Prime Minister Lee Kuan Yew made three significant visits to India between 1966 and 1971. Indira Gandhi, the then-Indian Prime Minister, reciprocated with her visit in 1968, alongside notable Indian leaders such as Morarji Desai. This period was marked by Singapore's unwavering support for India's aspirations, notably in advocating for India's permanent membership in the United Nations Security Council and bolstering its role within the Association of Southeast Asian Nations (ASEAN). Additionally, during the 1965 Indo-Pakistani War, Singapore stood by India, further solidifying their diplomatic bond.

The Cold War era posed challenges to military relations between the two nations, primarily due to differing foreign policy alignments. Singapore aligned itself with NATO, while India emerged as a pioneer of the Non-Aligned Movement, maintaining a unique position in global geopolitics by recognizing the Democratic Republic of Afghanistan. However, the landscape began to change in 2003 when India and Singapore entered into a bilateral agreement focused on advancing military cooperation. This agreement encompassed joint military training initiatives, technological collaboration in defense, and efforts aimed at maritime security. Since 1993, the Indian Navy and Singaporean Navy have conducted joint naval exercises, including notable ones such as SIMBEX and MILAN, primarily around India’s Andaman and Nicobar Islands. Moreover, shared concerns about terrorism have prompted both countries to enhance their cooperative frameworks to combat this menace.

In recent decades, Singapore has emerged as a pivotal hub for India's economic, political, and strategic engagements in Southeast Asia. The official announcement of India's Look East Policy in 1992 marked a critical juncture, with Singapore proactively positioning itself as India's de facto regional sponsor. This strategic partnership has been substantiated by remarks from Indian leaders, including Defence Minister Pranab Mukherjee in 2006, who emphasized Singapore's role as central to India's overarching political, economic, and security strategies in East Asia.

The legacy of Lee Kuan Yew, Singapore's founding father, continues to resonate in India-Singapore relations. Following his passing in March 2015, India observed a weekend of national mourning to honor his contributions to fostering strong bilateral ties. Prime Minister Narendra Modi's visit to Singapore in November 2015 served as a reaffirmation of the enduring and evolved partnership forged over fifty years, highlighting the depth and dynamism of diplomacy that continues to guide the two nations into the future.

Commerce Relations

India and Singapore share a robust commercial relationship, with Singapore being the 8th largest source of investment in India and leading among ASEAN nations. As of the 2005–06 period, Singapore ranked as India's 9th largest trading partner. The cumulative investment from Singapore in India reached USD 3 billion by 2006 and was projected to grow significantly, aiming for USD 5 billion by 2010 and USD 10 billion by 2015. This upward trend can largely be attributed to India's economic liberalization and its strategic "Look East" policy, both of which have spurred a dramatic increase in bilateral trade. Between 2001 and 2006, trade escalated from USD 2.2 billion to an impressive USD 9-10 billion, marking an extraordinary 400% growth in just five years. By 2010, this figure had surged to USD 50 billion. Notably, Singapore accounted for 38% of India's trade with ASEAN nations, contributing 3.4% to India's total foreign trade.

The trade dynamics between the two countries illustrate a diverse portfolio. In 2005, India's key exports to Singapore included petroleum products, gemstones, jewelry, and machinery, whereas Singapore's exports consisted primarily of electronic goods, organic chemicals, and various metals. An interesting aspect of this trade relationship is that over half of Singapore's exports to India are categories labeled as "re-exports," indicating items initially imported from India itself.

To further cement their economic ties, India and Singapore signed the Comprehensive Economic Cooperation Agreement (CECA) in 2005. This landmark agreement has laid the groundwork for a range of initiatives, including the establishment of the India-Singapore Parliamentary Forum and the Singapore-India Partnership Foundation, supported by influential industry bodies such as the Federation of Indian Chambers of Commerce and Industry (FICCI), the Confederation of Indian Industry (CII), and the Singapore Business Federation. The CECA has been instrumental in dismantling tariff barriers and redundant taxation, thereby facilitating smoother access and collaboration between the financial institutions of both countries. It has also fostered engagements in education, science and technology, intellectual property, and aviation, while streamlining visa regulations for Indian professionals in high-demand sectors like IT, healthcare, engineering, and finance, enabling easier migration and working opportunities in Singapore.

As the relationship has evolved, Singapore has taken significant strides in enhancing India's infrastructure, investing in the modernization of ports, airports, and information technology parks. Additionally, special economic zones (SEZs) have been developed, showcasing a commitment to fostering economic growth in India. By 2006, India had become the 4th largest tourist destination for Singapore, with over 650,000 Indian tourists visiting that year alone. The collaboration extends beyond traditional sectors, as both nations actively engage in joint ventures across aviation, aerospace engineering, space programs, information technology, biotechnology, and energy.

In recent years, Singapore and India have continued to strengthen their economic ties, with the second review of the CECA taking place on June 1, 2018, attended by Prime Ministers Narendra Modi and Lee Hsien Loong. This milestone was followed by the formal launch of the third review in September 2018, focusing on important areas such as trade facilitation, e-commerce, and customs improvements. Furthermore, India's Indian Space Research Organisation (ISRO) has collaborated with Singaporean educational institutions, successfully launching 20 satellites over a span of 13 years, showcasing the depth and versatility of the Indo-Singapore partnership in technological innovation and space exploration.

Military Cooperation

The military cooperation between India and Singapore has evolved significantly since its inception in 1994, with the establishment of the annual naval combat exercise known as "SIMBEX." This exercise has become a cornerstone for enhancing interoperability between the naval forces of both nations. The joint participation of several warships in SIMBEX showcases the commitment of both countries to bolster maritime security and tactical proficiency in responding to regional security challenges.

In 2003, the signing of the Defence Cooperation Agreement marked another milestone in this partnership, facilitating the training of Singapore's army and air force on Indian soil. This arrangement reflects a deepening military engagement that is not solely limited to naval activities but extends across various domains of defence. Over the years, this cooperation has further expanded into intelligence sharing, which is crucial in addressing contemporary security threats in the Asia-Pacific region.

The strategic relationship between India and Singapore took on a more comprehensive form when both nations signed an agreement on 24 November 2015. This agreement encompassed a wide array of areas, including defence, security, political exchanges, and economic linkages. The emphasis on enhancing trade and investment, improving financial connections, and increasing air connectivity illuminates a vision of mutual growth, underscoring the multifaceted nature of the ties that bind India and Singapore.

Further strengthening their military collaboration, India and Singapore signed a naval cooperation agreement on 29 November 2017. This agreement aims to bolster maritime security through enhanced joint exercises and mutual logistical support. Notably, it permits the navies of both countries to utilize each other's military bases for refueling and rearming operations. This development was welcomed by Singapore’s Defence Minister Dr. Ng Eng Hen, who emphasized the importance of Indian naval presence in Singapore, particularly at the Changi Naval base.

Another significant aspect of the military cooperation is the ongoing joint exercises between the Republic of Singapore Air Force (RSAF) and the Indian Air Force (IAF). These exercises are vital for enhancing operational readiness and interoperability. The revised Defence Cooperation Agreement signed on the same day as the naval agreement in 2017 further cements the defence relationship and highlights the commitment of both countries to work together more closely in responding to regional challenges and crises.

Overall, the military collaboration between India and Singapore exemplifies a robust strategic partnership that reflects shared interests in promoting peace, stability, and security in the Asia-Pacific region. With an increasingly complex security environment, the ongoing cooperation between these two nations is expected to adapt and grow, ensuring that both are well-prepared to address emerging threats and challenges together.

Impact of COVID-19 on India-Singapore Relations

The onset of the COVID-19 pandemic in 2019 marked a significant turning point for international relations across the globe, including the ties between India and Singapore. Recognizing the imminent threat posed by the virus, both nations acted swiftly; India ceased issuing short-term tourist visas starting from 11 March 2020, followed closely by Singapore halting similar visa issuances from 24 March 2020. Prior to Singapore’s decision to stop releasing individual case reports in April 2020, there were over 1,600 confirmed COVID-19 cases among Indian nationals living in Singapore. This initial wave of infections prompted both countries to reassess travel and health protocols extensively.

In response to the pandemic, India initiated a repatriation scheme in May 2020 to facilitate the safe return of its citizens stranded overseas, with plans to repatriate around 1,250 Indian nationals from Singapore. Simultaneously, India extended support by assisting Singapore in bringing back approximately 400 of its citizens. Despite the health crisis causing a significant disruption in various sectors, economic ties between the two nations remained resilient, albeit slightly slowed, with around USD 2 billion worth of investments flowing into India during that period.

As the pandemic evolved, India faced a catastrophic second wave starting in March 2021, which overwhelmed healthcare resources across the nation, particularly resulting in a severe shortage of medical oxygen. Combating this crisis, the Tata Group supplied four cryogenic oxygen tanks critical for transporting oxygen, which were airlifted from Singapore by the Indian Air Force. Moreover, Singapore's commitment to assisting its neighbor became evident when the Republic of Singapore Air Force sent two planeloads of much-needed oxygen supplies. Temasek Holdings also stepped in, donating essential medical equipment including ventilators and oxygen concentrators, showcasing the depth of cooperation between the two nations in times of dire need. Grassroots initiatives in Singapore further exemplified community spirit, raising funds and gathering supplies to support those in distress in India.

Complications arose in May when Delhi's Chief Minister Arvind Kejriwal expressed unfounded concerns about a new COVID-19 variant from Singapore being particularly harmful to children, suggesting it could trigger a potential third wave in India. This unfounded assertion led Singapore's Ministry of Health to clarify that no such variant existed, nor was there evidence to support the claims regarding the danger posed to children. The rise in COVID-19 cases during this period was eventually attributed to the already prevalent SARS-CoV-2 Delta variant, emphasizing the importance of accurate information dissemination during public health crises. Despite challenges faced, the collaborative efforts between India and Singapore demonstrated their longstanding relationship and mutual commitment to navigating unprecedented global challenges together.