(Singapore is a small city state but has grown into a thriving centre of commerce and industry. In the last decade Singapore has emerged as the most important trading partner amongst the ASEAN (Association of South East Nations) countries and also as India’s gateway to ASEAN and China. It is India’s largest export partner and the second largest source of imports from ASEAN. — Editor )

The Republic of Singapore, is an island country located at the southern tip of the Malay Peninsula. It is the smallest nation in Southeast Asia. Singapore has a highly developed market-based economy, which historically revolves around extended entrepot trade. Along with Hong Kong, South Korea and Taiwan, Singapore is one of the Four Asian Tigers. The economy depends heavily on exports refining imported goods, especially in manufacturing. Manufacturing constituted 26% of Singapore’s GDP in 2005. The manufacturing industry is well-diversified into electronics, petroleum refining, chemicals, mechanical engineering and biomedical sciences manufacturing.

Singapore has a highly developed market-based economy, which historically revolves around extended entrepot trade. Along with Hong Kong, South Korea and Taiwan, Singapore is one of the Four Asian Tigers. The economy depends heavily on exports refining imported goods, especially in manufacturing. The manufacturing industry is well-diversified into electronics, petroleum refining, chemicals, mechanical engineering and biomedical sciences manufacturing.

Singapore, with a per capita income close US$ 30,000 is India’s largest trading and investment partners in Association of South East Asia Nations .The increasingly close relations between India and Singapore in recent years have been underpinned by a dramatic growth in bilateral trade and investment linkages. India is looking for infrastructure investments, critical technologies and export markets. Singapore has surplus capital and could be a useful partner in infrastructure development in India as well as investment in Indian companies.

The major items of India’s exports to Singapore are Crude petroleum, Refined Motor spirit, Petroleum oils, Polished diamonds for jewellery, Polished industrial diamonds, articles of Jewellery, Aluminum Unwrought, Aluminium sheets, Parts & accessories of computers, Synthetic fabrics, Silk fabrics, Embroidery/Table linen of Man Made Fibres, Combed cotton, Knitted T-shirts, Vests, Benzene, Dyes, Acids, Insecticides, Fungicides, Household articles of stainless steel, Corrugated products of iron and steel, Forged/stamped articles of iron and steel, Bars and Rods of iron steel, Parts of Boring or Sinking machinery, X-ray tubes, Medical Surgical Dental or Veterinary instruments/ appliances, Penicillin, Rice, Sugar, Cashew nuts, Essential oil, Crabs live/dried, Fish (fresh/chilled/dried), Titanium ore, Menthol, Diesel/semi-diesel generating sets, Static converters, Valves/Taps Cocks for Pipes, Boilers, tanks etc, Bus/lorry tyres, Tobacco. These items in value terms constitute over 70% of India’s exports to Singapore.

A close look at the export list shows that there is much Gujarat can export to Singapore. Coincidentally, Singapore government has taken special efforts to promote economic and trade relations with Gujarat. Some of the Govt-Linked Corporations (GLCs) of Singapore’s projects include Ascendas’ Information Technology Park in Bangalore, the participation of the Port of Singapore Authority (PSA) in both equity (40%) and management of Pipavav Port, Gujarat.

Recently, the Singapore Indian Chamber of Commerce and Industry has opened an office in India to facilitate deeper trade ties between the two countries. The SICCI office in New Delhi will function as a “hand-holding” facility for Singapore firms, helping them to navigate the Indian market. The new facility would also serve as a platform for Indian companies looking to do business in Singapore and the region, he said.

The SICCI’s New Delhi office could also serve as a platform for Indian firms wanting to do business in the Southeast Asian region. Indian investments in Singapore are also showing an accelerating trend. There are some 3,000 Indian firms having a presence in the city state, many of them using Singapore’s links with China, Japan, Malaysia and other countries in the region to internationalise their businesses. India and Singapore have set an ambitious target of doubling annual bilateral trade to $50 billion by 2012.

Singapore and India have traditionally enjoyed warm and close relations due to historical and cultural ties. Relations have now flourished to cover a broad spectrum of political, economic, cultural, educational, human relations development and people-to-people exchanges. Economic cooperation between Singapore and India in the fields of trade and investment have also expanded significantly in the past decade. The foundation for a strong and fruitful partnership between Singapore and India is already in place and there is much potential to bring ties further forward. Both countries’ relative strengths and complementarities offer enormous potential for further expansion of bilateral relations.