India's growing role in global economy presents opportunities for Singapore: Industry body chief

India's growing role in the global economy presents Singapore with opportunities for collaboration across economic, technological and geopolitical spheres, Singapore Indian Chamber of Commerce and Industry chairman Neil Parekh has said. The Indian-origin business leader's comments came as Singapore Prime Minister Lawrence Wong announced the elevation of the India-Singapore strategic partnership to a comprehensive strategic partnership on Thursday. Parekh was speaking at the inaugural "Singapore India Forum – The Next Phase" which was attended by some 350 members of the Singapore business community.

By strengthening its relationship with India, Singapore can further solidify its position as a pivotal player in the evolving global landscape, given that the two countries have a long-standing partnership that has deepened over the years, Parekh said. "This strong relationship between both governments has fostered continuous engagement at multiple levels, between government entities and business sectors alike. "This foundation has led to expanded economic collaborations and recent agreements that increase trade and investment, and foster growth and new business opportunities in both nations," he added.

Parekh said that to successfully navigate India's dynamic market, it is essential to recognise and understand the country's unique federal governance structure. India operates with a high degree of decentralisation, meaning that many key approvals and regulations — covering areas like land, environment, electricity, water, and manpower — are managed at the state or city council level, he elaborated. An approach that takes into account this decentralised framework would be vital for anyone looking to tap into India's vast potential, he said."

This regional approach enables Singaporean companies to better navigate the Indian market and leverage the opportunities offered by India's rapid digitisation and economic reforms," said the business leader who is also a Nominated Member of Singapore Parliament. India was Singapore's 12th largest trade partner in 2021-22 with a share of 2.3 per cent in Singapore's overall trade. Bilateral trade stood at SGD 46.57 billion in 2022-23, an 18 per cent increase over 2021-22. Singapore is also the second largest investor in India. With the global shift towards "China plus 1" or now increasingly "China plus 2" strategy, many nations are turning to India as a major hub for supply to ASEAN and Singapore markets, said Parekh.

As the "Make in India" initiative gains momentum, India is set to become a key player in manufacturing and production of goods and services, very much in line with its ambitions to become a superpower, he claimed. Beyond the traditional sectors like technology, IT and waste management, one untapped yet promising area is India's agriculture, fresh foods and contract farming, and processed food industry, he noted. "Collaborations in these sectors could play a vital role in supporting Singapore's 30 by 30 vision for food security," he added.

By engaging with India's expanding market, Singaporean companies cannot only find new avenues for growth but also contribute to building a resilient food supply chain in the region, Parekh said. He said India's rapidly evolving market presents opportunities in green energy, fintech and digital services, but also challenges like regulatory hurdles and cultural differences. For Singaporean businesses, understanding these trends.