Singapore’s favorable business environment and robust trade relations with India have attracted numerous Indian companies to establish bases in the city-state. With approximately 9,000 Indian companies registered in Singapore, notable firms like Tata Group, Mahindra & Mahindra, Reliance Industries, AdGroup, Infosys, and Wipro have set up operations there. Bilateral trade between India and Singapore reached USD 30.11 billion in the fiscal year 2021-22, with Singapore being India’s 6th largest trade partner and India being Singapore’s 12th largest trade partner.
Singapore is also a significant investor in India, with USD 140.99 billion invested from April 2000 to September 2022, making it the country’s second-largest investor. The top sectors attracting foreign direct investment (FDI) from Singapore include services, computer software & hardware, trading, telecommunications, drugs & pharmaceuticals, and manufacturing.
India’s “Make in India” campaign, launched in 2014, aims to promote manufacturing and attract foreign investment. The government’s efforts to improve the ease of doing business have resulted in India’s rise in the World Bank’s Ease of Doing Business Index. India aims to increase the manufacturing sector’s share of GDP to 25% by 2025.
Amid supply chain disruptions and geopolitical tensions, India has attracted companies like Apple, Samsung, Kia, Boeing, Siemens, and Toshiba to shift their manufacturing activities to the country. Singaporean firms, including contract manufacturers supporting multinational corporations, have also shifted operations to India. Enterprise Singapore has been instrumental in facilitating the entry of Singaporean firms into India and supporting their growth through favorable policies and economic opportunities. Tamil Nadu, India’s most industrialized state, has been a focal point for Singapore manufacturers, with around 39,000 registered factories in the state.
