Singapore and India: A Strategic Power Duo Shaping Asia's Future

The partnership between Singapore and India is not just a collaboration—it’s a vision for the future of Asia. Together, these two nations are weaving a dynamic tapestry of trade, technology, and innovation, setting a benchmark for regional growth and global influence.

Why Singapore and India Are a Match Made for the 21st Century

Complementary Strengths

• Singapore: The epitome of efficiency, this financial hub excels in governance, infrastructure, and connectivity and serves as a gateway to Southeast Asia.
• India: With one of the world’s fastest-growing economies, a thriving tech sector, and a massive consumer base, India is a global powerhouse in the making.

President, Tharman Shanmugaratnam on his recent visit to India (Jan 14–18, 2025) reaffirmed this synergy. During his visit, he celebrated the deep ties between the two nations, including India’s early recognition of Singapore’s independence in 1965—just 15 days after its separation from Malaysia.

Singapore’s new Prime Minister- Lawrence Wong also emphasized the importance of elevating this partnership to address emerging opportunities in technology, green energy, and digital innovation.

Key Areas Driving the Collaboration

Technology and Innovation

• Fintech & AI: Joint ventures in artificial intelligence, cybersecurity, and digital banking are driving transformative change.
• Semiconductor Ecosystem: Singapore’s advanced manufacturing expertise is accelerating India’s semiconductor ambitions.
• Smart Nation Initiatives: India’s IT talent is powering Singapore’s tech transformation.

Trade and Investment

• Singapore is India’s largest trading partner in ASEAN, accounting for 3.2% of its global trade and ranking as a leading source of Foreign Direct Investment (FDI).

Green Energy & Skills Development

• Joint efforts are focused on renewable energy projects, green finance, and workforce alignment programs to upskill talent in both nations.

Startups and Entrepreneurship

• Singapore acts as a launchpad for Indian startups expanding into Southeast Asia, while Indian entrepreneurs are contributing to Singapore’s vibrant startup ecosystem.

Singaporean Brands Making Inroads in India

The collaboration between Singapore and India is further exemplified by the success of key Singaporean brands and initiatives in India, driving economic growth and fostering innovation. Here are some notable examples:

DBS Bank: Redefining Banking in India

DBS Bank has cemented its presence in India as a leader in innovative banking solutions. As of January 2025, DBS Bank India Limited operates a robust network of over 530 branches across 19 states, providing unparalleled accessibility. The Digibank platform, launched in 2010, revolutionized digital banking in India with its paperless, branchless banking experience. Further bolstering its presence, DBS acquired Lakshmi Vilas Bank in November 2020, expanding its reach and deepening its impact in India’s growing financial sector.

Singapore Tourism Board (STB): Bringing India to Singapore

The Singapore Tourism Board (STB) has been instrumental in promoting Singapore as a prime travel destination for Indian tourists. Campaigns like "Passion Made Possible" and collaborations with Bollywood have positioned Singapore as a top choice for Indian travelers. This effort has strengthened the cultural and economic ties between the two nations, with India and Singapore achieving bilateral trade of $30.11 billion in 2021-22, reflecting their robust partnership.

Changi Airports International (CAI): Transforming India's Aviation Landscape

Changi Airports International has played a pivotal role in shaping India’s aviation sector. In January 2025, CAI acquired a 26% stake in Bengal Aerotropolis Projects Limited (BAPL), spearheading India’s first ‘aerotropolis’ in Durgapur. This ambitious project includes the development of a greenfield airport, an industrial park, a logistics hub, an IT park, and a township. Additionally, CAI signed a Technical Service Agreement to support the planning and development of Durgapur Airport, showcasing its commitment to advancing India’s infrastructure.

The Hub Engineering: Innovating Manufacturing for India

Singapore’s The Hub Engineering has made significant strides in India through its subsidiary, Reliable Hub’s Engineering India. Specializing in equipment for the retail and food services industries, the company saw its turnover increase five-fold, from 148 million rupees in 2018 to 723 million rupees in 2022, a testament to the growing demand for its innovative products in India.

Enterprise Singapore: Catalyzing Business Growth

Enterprise Singapore , a statutory board, actively supports Singaporean firms in establishing a foothold in India. By 2022, the number of Singaporean firms working with Enterprise Singapore to enter India increased by over 40% compared to pre-pandemic levels in 2019. This reflects the expanding opportunities for Singaporean businesses in India's dynamic economy.

Startups: Driving Innovation Across Borders

Singaporean startups have embraced India as a hub for innovation and growth. From satellite mapping and AI-driven data analysis to cleaning technologies and e-waste recycling, at least 300 Singapore startups have entered India since 2023. Conversely, many Indian startups have registered holding companies in Singapore, benefiting from its business-friendly environment and access to global funding opportunities.

The Bigger Picture: Regional and Global Impact

A Stronger Asia

The India-Singapore partnership is reshaping Asia’s economic landscape, reducing dependency on traditional global hubs through advancements in logistics, supply chains, and innovation networks.

Geopolitical Synergy

From their joint naval exercises (SIMBEX) to active participation in ASEAN and Indo-Pacific dialogues, these nations share a commitment to regional peace and economic integration.

Scaling Digital Connectivity

In a groundbreaking step, India’s UPI and Singapore’s PayNow payment systems were linked in 2021, enabling seamless, real-time transactions across borders.

Singapore: At the Heart of India’s Act East Policy

Singapore plays a pivotal role in India’s “Act East Policy,” serving as:

• A Diplomatic Hub: Strengthening India’s ties with ASEAN nations.
• A Strategic Ally: Collaborating on regional security and maritime freedom.
• An Economic Bridge: Driving investments and partnerships that benefit both countries.

From its role as a launchpad for Indian businesses to its contributions to green energy and digital connectivity, Singapore is a cornerstone of India’s ambitions in Southeast Asia and beyond.

Why This Alliance Matters

The growing partnership between India and Singapore is more than a strategic alliance—it’s a transformative movement shaping the socio-economic future of Asia. For businesses, this isn’t just about entering new markets; it’s about becoming part of a larger ecosystem that uplifts economies, communities, and industries. Here’s why it matters:

Unlocking Expansive Markets and Uplifting Communities

The India-Singapore partnership offers businesses access to two rapidly growing economies while directly contributing to the well-being of millions.

• In India: Businesses can tap into a 1.4 billion-strong consumer base, helping to create jobs and boost income levels in underdeveloped regions. Singaporean investments in sectors like infrastructure and education are improving living standards, making this a win-win scenario for businesses and communities alike.
• In Singapore: Indian businesses entering the market are contributing to the city-state’s dynamic economy, fostering job creation, and strengthening the regional innovation ecosystem.

Socio-economic impact: This partnership supports upward mobility, providing job opportunities, improving access to essential services, and enabling better living standards for both populations.

Driving Skills Development and Workforce Transformation

One of the alliance's core focuses is on equipping people with the skills of tomorrow. Joint initiatives in workforce training are preparing populations in both nations for industries like renewable energy, advanced manufacturing, and green finance.

• Programs such as Singapore’s expertise-sharing in India’s Smart Cities initiative are creating employment opportunities for thousands while building sustainable urban environments.
• India’s tech talent is powering Singapore’s Smart Nation vision, enabling breakthroughs in AI, fintech, and cybersecurity.

Socio-economic impact: By prioritizing skills development, this partnership is creating a future-ready workforce, reducing unemployment, and bridging income disparities.

Fostering Startup Innovation and Grassroots Empowerment

India and Singapore have become hubs for startups, enabling a ripple effect that empowers communities.

• In India, Singaporean startups bring solutions in clean tech, e-waste management, and satellite mapping, solving real-world challenges while creating local jobs.
• In Singapore, Indian entrepreneurs are strengthening the city’s startup ecosystem, fueling innovation and ensuring diverse, inclusive growth.

Socio-economic impact: Startups contribute to grassroots development, bringing solutions to underserved communities, driving environmental sustainability, and creating scalable, local opportunities.

Pioneering Green Growth for a Sustainable Future

The India-Singapore alliance is centered on sustainability, with joint projects in renewable energy, green finance, and sustainable infrastructure.

• Singapore is helping India build smart industrial parks and green cities, promoting eco-friendly practices and reducing carbon footprints.
• Indian companies are sharing innovative green technologies with Singapore, furthering its sustainability goals.

Socio-economic impact: These initiatives address climate change, improve public health by reducing pollution, and create jobs in the green economy, ensuring inclusive and long-lasting economic growth.

Improving Digital and Physical Connectivity for Regional Prosperity

Digital and physical infrastructure development is a cornerstone of this partnership.

• The linking of India’s UPI with Singapore’s PayNow has enabled faster, cost-effective remittances for migrant workers, helping families back home and boosting financial inclusion.
• Changi Airports International’s investments in India’s aerotropolis project are enhancing logistics and trade, directly benefiting local communities through job creation and improved accessibility.

Socio-economic impact: Improved connectivity enhances access to resources, stimulates regional trade, and strengthens rural economies, making opportunities more inclusive.

Why This Alliance Matters to Businesses

This partnership is not just about numbers; it’s about businesses driving change while benefiting from shared growth. Here’s how it impacts businesses and their surrounding communities:

• Economic Empowerment: By entering these markets, businesses directly contribute to job creation, skill-building, and socio-economic development.
• Sustainable Impact: Investments in green projects and smart infrastructure help companies align with global sustainability goals, gaining trust among socially conscious consumers.
• Cultural Exchange: The partnership fosters cross-border collaboration, promoting innovation, inclusion, and a better understanding of regional cultures.

The Big Picture: Securing Asia's Future through Strategic Collaboration

Singapore’s keen interest in partnering with India goes beyond economic gains—it’s a strategic move to align with a rising global power that complements its ambitions. As Singapore aims to solidify its position as the region’s financial and innovation hub, India’s vast market, technological prowess, and growing geopolitical influence offer a partner that can anchor this vision. For Singapore, India represents not just a market but a collaborator capable of reinforcing Southeast Asia’s role in global trade, ensuring regional stability, and driving collective growth in an increasingly multipolar world.

Meanwhile, India views Singapore as its gateway to ASEAN and a critical ally in advancing its Act East Policy, leveraging Singapore’s advanced infrastructure, access to global markets, and strategic location to expand its regional footprint. Together, these nations are crafting a partnership that is as much about shaping the future of Asia as it is about securing their mutual place in it.

This is more than a bilateral agreement—it’s a commitment to innovation, sustainability, and shared progress that has the potential to redefine the way nations collaborate in the 21st century. The opportunities for businesses, entrepreneurs, and communities are immense, and those who act now will find themselves at the forefront of this transformation.