Singapore PM Lawrence Wong to Strengthen Trade and Investment Ties During India Visit

India and Singapore are set to ink five major agreements covering civil aviation, space, shipping, finance, digital innovation, and skill development.

Singapore’s Prime Minister Lawrence Wong is set to make his first official visit to New Delhi this week, highlighting Singapore’s sustained confidence in India’s economic growth despite global uncertainties. The visit will witness the signing of several bilateral agreements and initiatives aimed at boosting cooperation across trade, investment, aviation, green energy, and digital transformation.

Accompanying Wong will be a senior-level delegation including Foreign Minister Vivian Balakrishnan and Senior Minister of State for Finance Jeffrey Siow. During the three-day trip, Wong is scheduled to hold discussions with Prime Minister Narendra Modi on Thursday and engage with top Indian business leaders on Wednesday, according to the Ministry of External Affairs.

Officials indicate that both nations are expected to finalize five agreements focusing on civil aviation, space, shipping, finance, digital innovation, and skill development. In addition, a joint statement is likely to be released, laying out a comprehensive roadmap for future collaboration under strategic pillars such as economic growth, defence and security, digitalisation, connectivity, and people-to-people engagement.

As part of the visit, the two leaders will virtually inaugurate the PSA Mumbai terminal at Nhava Sheva Port, an investment of $1.3 billion by Singapore’s PSA International, further underscoring the growing economic ties between the countries.

Wong’s trip is intended to deepen bilateral economic relations and explore opportunities for collaboration in forward-looking sectors including advanced manufacturing, sustainability, digital technologies, and space exploration. These efforts aim to strengthen resilience against present challenges while securing long-term growth and innovation.

Trade between India and Singapore has surged nearly 2.5 times since the implementation of the Comprehensive Economic Cooperation Agreement (CECA) in 2005, rising from $15.5 billion to $40 billion in 2023. Singapore remains India’s top foreign investor, contributing around 24% of total FDI equity inflows since 2000, with cumulative investments from 2014 to 2024 reaching $159 billion.

Despite uncertainties stemming from US trade policies, including steep tariffs on Indian exports during the Trump administration, Singaporean investors continue to demonstrate confidence in India’s economic trajectory. Many of these investors have maintained a presence in India for over two decades, with plans to invest up to $15 billion this year, signaling their long-term commitment.

Wong’s visit follows last month’s India-Singapore Ministerial Roundtable (ISMR), a high-level mechanism aimed at enhancing economic cooperation. The two prime ministers are expected to endorse several proposals discussed during the roundtable, which include exporting green energy from India to Singapore, establishing data storage and AI hubs, and collaborating on the development of small modular reactors (SMRs) for power generation.

Singapore’s renewable energy company Sembcorp is already engaged in developing green energy initiatives near Indian ports in Odisha and Maharashtra. With Singapore exploring the possibility of constructing floating SMRs, there is also potential for joint research and development on miniaturized nuclear reactors between the two nations.

The Ministry of External Affairs has highlighted Singapore as a key partner for India under the “Act East” policy and stated that Wong’s visit reaffirms the mutual commitment to strengthen and expand the India-Singapore strategic and economic partnership.