Singapore is not only India’s largest FDI source but also a reliable trade partner in ASEAN, which will further get a boost with the visit of the Union Minister for Finance and Corporate Affairs to Singapore from 9th to 11th October 2026.
Trade partnership with high potential: Bilateral trade has expanded substantially following the conclusion of the India-Singapore Comprehensive Economic Cooperation Agreement (CECA), increasing from USD 6.7 billion in FY 2004-05 to USD 36.1 billion in FY 2025-26. The CECA, signed in 2005, was the first comprehensive trade agreement India entered into with any partner and Singapore’s first such pact with a South Asian country.
Singapore is India’s 6th largest trade partner with a share of around 2.96 % of India’s overall trade. Our imports from Singapore in FY 2025-26 were USD 24.24 billion, exports to Singapore totalled USD 11.86 billion with trade deficit of USD 12.38 billion.
India majorly imports electronic goods worth US$8.60 billion, machinery worth US$2.30 billion and coal, coke and briquettes worth US$2.03 billion from Singapore while its exports included petroleum products at US$4.44 billion and engineering goods at US$4.50 billion followed by electronic goods and chemicals.
However, India’s focus on diversifying its export basket pharmaceuticals, electronics, engineering products could improve the balance.
Singapore is India’s largest trade partner in ASEAN. Also, Singapore is India’s largest source of FDI, with cumulative FDI inflows of around USD 194.68 billion during April 2000–March 2026. Singaporean institutional investors, including GIC and Temasek, have significant investments across the Indian economy.
The two nations have made significant progress in financial connectivity, capital markets, taxation, semiconductors, advanced manufacturing, skilling and aviation.
Both the nations have signed Double Taxation Avoidance Agreement (DTAA) which helps prevent the same income from being taxed twice and establishes rules for allocating taxing rights between the two countries.
This is complemented by platforms such as the National Investment and Infrastructure Fund (NIIF) and GIFT City which provides avenues for greater participation by Singaporean capital, including through investment vehicles and funds.
The year 2025 marked the 60th anniversary of the establishment of diplomatic relations between India and Singapore, as well as the 20th anniversary of the Comprehensive Economic Cooperation Agreement (CECA).
There is a wider cooperation in semiconductor sector and digitalisation of trade, partnerships in skills development, capacity building, and other emerging sectors for mutual benefit.
Skill Development cornerstone of cooperation: There is active collaboration between India and Singapore to establish skill development centres in various sectors. Skill center projects with public and private support have been completed at 6 places (Himachal Pradesh, Delhi, Rajasthan (Udaipur), Assam (Guwahati), Odisha (Bhubaneshwar) and Telangana (Hyderabad)) and 2 projects (Madhya Pradesh (Bhopal) and Gujarat (Gandhinagar)) are ongoing.
During the Prime Minister Narendra Modi visit in September 2024, both sides exchanged MoU on Cooperation in Education and Skill Development. During the visit of Singaporean Prime Minister Lawrence Wong to India in September 2025, an MoU for establishment of a National CoE for skilling in advanced manufacturing in Chennai was exchanged.
A win-win partnership: About 9000 Indian companies are registered in Singapore. 6 PSUs, 10 banks, CII, FICCI have their offices in Singapore. During the Prime Minister’s visit to Singapore in September 2024, it was announced that Invest India will open an office in Singapore to facilitate investments from Singapore. The Invest India office in Singapore was inaugurated on 22 September 2024.
More than 440 companies from Singapore are registered in India, two Singapore banks (Development Bank of Singapore and United Overseas Bank), Enterprise Singapore (ESG), Economic Development Board (EDB) and Singapore Tourism Board have their offices in India. Singapore Business Federation inaugurated its first office in India, in Bengaluru, in November 2025.
Significance of Singapore: It is a major financial and commercial gateway to Southeast Asia for India. Due to its pivotal position as largest FDI source it infuses substantial capital into Indian businesses and infrastructure.
Its expertise in electronics, advanced manufacturing, semiconductors logistics and digital services provides ample opportunities for partnership in technology and skill development.
Its strong connectivity, international business networks and regional presence make it a useful base for Indian companies seeking to expand across ASEAN markets. This combination of capital, technology and regional access gives Singapore strategic importance in India’s economic diversification and manufacturing ambitions.
The next phase will depend on converting investment and institutional cooperation into stronger domestic production, technology partnerships and export opportunities.
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