Opportunities for the Indian corporate in Singapore

Economic and commercial relations between India and Singapore have increased substantially in the twenty first century especially after the conclusion of the Comprehensive Economic Cooperation Agreement in 2005. During the financial year 2005- 2006, total trade was approximately $8.7 billion.In financial year 2013-2014, bilateral trade expanded to $19.3 billion, an increase of more than 100 per cent. During the same period, India's exports to Singapore amounted to approximately $12.5 billion and India's imports from Singapore were approximately $6.7 billion. Singapore is India's tenth largest trading partner and the largest trading partner in ASEAN. It is the largest recipient of Foreign Direct Investment (FDI) from India. Indian FDI to Singapore increased exponentially from $351 million in 2004-2005 to $37.4 billion in 2015.The Indian business community is the largest business community in Singapore and more than 5000 Indian companies have operations in Singapore. It is the regional headquarters for the Asia-Pacific regional operations for Indian companies. It is emerging as a key offshore hub for the Indian corporate. Indian companies have set up servicing and manufacturing operations in Singapore and are increasingly using Singapore for raising funds for global operations. Nine Indian banks operate in the country and SBI and ICICI have retail operations.Singapore offers numerous advantages to Indian businesses. It ranks first in the Top 10 strongest nation brands. It is an international financial hub and also a hub for wealth management and foreign exchange. It is the fourth largest forex trading centre in the world with an average daily volume of $337 billion and more than $1.8 billion is managed from Singapore.It provides sophisticated financial solutions which lower the cost of trade financing. It offers a strong IP protection regime and since 2006, is consistently ranked in the top five by the World Economic Forum. A neutral location for arbitration, common legal system, great business and flight connectivity are also attractive for Indian businesses.Singapore provides a springboard for Indian corporate to expand operations not only in the Asia-Pacific but also globally. It provides excellent opportunities for Indian corporate houses for international branding by providing a synergy in design, innovation, market research, branding and marketing. It also provides opportunities to tap into growth potential in Asia-Pacific in sectors such as information technology and media, FMCG, pharmaceuticals and biotechnology, infrastructure and engineering, and procurement and construction sectors. Indian corporate houses have a significant presence in these sectors in Singapore. Singapore's 69 Double Taxation Avoidance Agreements with resource rich Asian countries will allow companies to secure upstream resources such as plantations and coal mines and manage these upstream resources by tapping into the country's financial infrastructure.

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.