What can India offer Singapore

Singapore's investment in India has increased significantly in the new millennium, especially after the conclusion of the Comprehensive Economic Cooperation Agreement in 2005.In 2013, Singapore overtook Mauritius to become the largest foreign investor in India. For the financial year 2013-2014, Singapore was the largest source of foreign direct investment (FDI) with US$5.98 billion that is approximately 25 per cent of FDI in to India. From April 2000 to March 2015, Singapore was the second largest source of FDI amounting to US$32.2 billion or 13 per cent of overall FDI into India. FDI has focused on sectors such as banking, telecommunications, pharmaceuticals, information and technology in addition to investment in airports, ports and infrastructure projects.Considering that India is one of the largest growing consumer markets in the world, there is scope for further expansion of economic and commercial links between the two countries. There is also scope for cooperative projects in third countries and venture capital for innovations. In July 2012, a milestone cooperation agreement was signed between the Federation of Indian Chambers of Commerce and Industry and Singapore Business Federation to further enhance industrial cooperation to expand joint ventures, create investment opportunities and technological cooperation between India and Singapore and also other countries.During Minister of External Affairs, Government of India, Sushma Swaraj's visit to Singapore in 2014, the two countries decided to expedite negotiations for the second review of the Comprehensive Economic Cooperation Agreement to further expand economic ties. There are significant opportunities for Singapore companies to invest in India under the 5S framework that is speeding up air and maritime connectivity and coastal development, skills development and capacity building, scaling up investments and trade, smart city development and urban rejuvenation and state focus to strengthen business and cultural links. Swaraj invited companies from Singapore to expedite infrastructure and connectivity projects in the North-East, Delhi-Mumbai Industrial Corridor and the Chennai-Bangalore Industrial Corridor.In December 2014, Singapore agreed to build the new capital of Andhra Pradesh. The city, ten times the size of Singapore will cover approximately 7,235 square kilometres and is expected to cost approximately $16.5 billion. The Centre for Liveable Cities based in Singapore and funded by Singapore government will train the state officials and utilities will be constructed by companies from Singapore.The Indian government has an ambitious venture to develop 100 smart cities by 2020 and has allocated 7,600 crores for the venture. Companies from Singapore can play an extremely important role in the development of the smart cities.Singapore also established the World Class Skill Development Centre in New Delhi. Considering India's huge requirement for skill development, the centre could act as a model for setting up of similar centres in the rest of India especially the North-East.Other potential areas of investment and partnership include energy, agriculture especially agricultural processing units and manufacturing.

Dr Raj Verma is Assistant Professor in International Relations and Foreign Policy at the School of International Relations and Public Affairs, Jilin University, and Fudan Senior Fellow, Centre for BRICS Studies, Fudan University.