After 50 years of diplomatic ties, India and Singapore to be strategic partners

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After almost five decades of having diplomatic ties, India and Singapore will become strategic partners for the first time on Monday.

The partnership will encompass all aspects of bilateral ties from expansion of defence cooperation, enhancement of trade and investment and strengthening of regional relationship with the Association of Southeast Asian Nations (ASEAN).

The decision to sign the Strategic Partnership Agreement with Singapore was taken in August 2014 based on a ‘5S Plank’. Since then both Prime Minister Narendra Modi and Singapore Prime Minister Lee Hsien Loong have been continuously discussing the contours of such a pact as they planned to take their relationship beyond just business and trade.

“It is crucial to have such a pact with Singapore considering its strategic location. Not only will it enhance India’s ‘Look East’ policy, but it will also give India a greater voice in the ASEAN region at large,” an official told BusinessLine.

This is also done keeping in mind the increasing presence of China in that region and the escalation of dispute in the South China Sea region, the official added.

As a result, Modi’s visit to Singapore assumes importance. The pact will be signed with both leaders having a summit-level dialogue where all issues are expected to be discussed, with a special focus on India’s overall strategy in the Indian Ocean region.

“Singapore is an integral part of our Look East Policy and it was announced from there by our former Prime Minister Narasimha Rao. Singapore remains one of our important defence exporters. Besides, they have been trying to act as a bridge between India and China and all these is linked to the entire Indian Ocean strategy that India is now working on,” highlighted Sanjaya Baru, Director for Geo-economics and Strategy, at the London-based International Institute of Strategic Studies (IISS).

Recently, at a meeting of the Fourth Joint Commission, which was co-chaired by External Affairs Minister Sushma Swaraj and her Singaporean counterpart Vivian Balakrishnan, issues such as maritime cooperation, trade ties and cyber security were discussed. While in Singapore, Modi is also expected to deliver the prestigious ‘Singapore Lecture’ at the Institute of South East Asian Studies.

Singapore has emerged as the second largest source of FDI amounting to $35.9 billion as of June 2015, which is 14 per cent of India’s total FDI inflow. India also has a Comprehensive Economic Cooperation Agreement with Singapore with bilateral trade reaching $17.1 billion in 2014-15.

Source: http://www.thehindubusinessline.com/todays-paper/tp-news/after-50-years-of-diplomatic-ties-india-and-singapore-to-be-strategic-partners/article7906529.ece

Singapore to focus more on economic activities in India: Experts

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“The emphasis would be on working with India in the areas we are good at, including skill development and town planning,” he told PTI in comments on India-Singapore ties ahead of Modi’s visit from November 23.

Singapore will further strengthen its bilateral trade ties with India through the “strategic partnership” the two countries will establish during Prime Minister Narendra Modi’s visit here next week, according to experts.

 

“The strategic partnership means bringing the relationship between the two countries to a higher level. This is likely to be focused on economic activities,” said Gopinath Pillai, Chairman of the Institute of South Asia Studies, a think-tank of the National University of Singapore.

 

“The emphasis would be on working with India in the areas we are good at, including skill development and town planning,” he told PTI in comments on India-Singapore ties ahead of Modi’s visit from November 23.

 

Singapore and India have enjoyed steadfast bilateral relations for the past five decades which were further enhanced under the 2005-Comprehensive Economic Cooperation Agreement (CECA), a free-trade pact promoting economic and trade activities.

 

Singapore is India’s second largest investor, especially in the power and port sectors.

 

CECA is further being reviewed and would encourage more international investments through Singapore into massive developments taking place in India.

The Indian government has this month further liberalised Foreign Direct Investment (FDI) in infrastructure, sending a clear signal of its economic reform programmes, Pillai added.

 

Depending on how the reviewed CECA is positioned, Singapore-based investors remain “gung-ho” on economic prospects in India and will use the treaty to venture into the Indian market, just as Indian companies and businesses are using Singapore as a springboard to spread across Asian markets, including China, he said.

 

The Indian leader’s visit to Singapore is also seen as timely and comes soon after one made by Chinese President Xi Jinping in early November.

 

Singapore, as a signatory to the Trans-Pacific Partnership and as negotiator of the China-led pan-Asian Regional Comprehensive Economic Partnership, can help India expand into Asia, according to Girija Pande, Executive Chairman of Apex Avalon.

 

Pande also pointed out that, Singapore with its links to the Asian supply chain, can also play an important role in ‘Make in India’ initiative, calling on the Indian Prime Minister to push for more commercial engagement with Singapore and the wider ASEAN region.

 

Singapore and India have many collaborative programmes between schools and colleges.

 

“Students from Singapore often visit Indian schools to get better understanding of the Indian communities and study approaches and vice versa,” he said.

 

Source:  http://economictimes.indiatimes.com/articleshow/49857019.cms

India, Japan sign action plan to double investments in 5-years

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The governments of India and Japan signed an agreement on Thursday for doubling of Japanese investment into Indian firms in the next five years, and  boosting two-way trade. The signatories were Commerce and Industry Minister Nirmala Sitharaman and Japan’s minister for economy, trade and industry, Yoichi Miyazawa.

The plan was categorised into five broad areas: development of selected townships in India, promotion of investment and infrastructure development, further development and cooperation in information technology, enhancing cooperation in strategic sectors and Asia-Pacific economic integration.

Signing of the action plan is seen “as a step further in improving the trade relationship between India and Japan as a follow-up of Prime Minister Narendra Modi’s visit to Japan last year,” stated a release quoting Miyazawa.

According to Sitharaman, the agenda was in line with PM’s Make in India plan that will further investments from Japan into the country’s manufacturing sector.

Last year, the Department of Industrial Policy and Promotion under the ministry of commerce and industry had set up a mechanism to fast-track Japanese investments named ‘Japan Plus.’

During Modi’s visit, Japanese Prime Minister Shinzo Abe had set a target of 3.5 trillion yen ($33.5 billion) of public and private investment and financing from Japan including official development assistance to India to be made over five years. There are already 1,209 Japanese firms operating in India out of which 137 have started their operations after October 2013.

Japan is the fourth largest foreign direct investment (FDI) contributor to India, with major interests in pharmaceuticals, automobiles, and services sectors accounting for 7.46 per cent of total FDI equity inflows into India. During April 2000-November 2014, FDI from Japan into India stood at $17.55 billion.

Under the Tokyo Declaration for Japan-India Special Strategic and Global Partnership, Modi and Abe have set a target of doubling Japanese FDI and the number of Japanese firms in India by 2019.

Source: http://www.business-standard.com/article/economy-policy/india-japan-sign-action-plan-to-double-investments-in-5-years-115043000401_1.html

Modi government announces FDI (Foreign Direct Investment) reforms in 15 sectors

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Giving the much needed reforms impetus to the economy, Prime Minister Narendra Modi-led NDA government on Tuesday announced Foreign Direct Investment (FDI) reforms in as many as 15 sectors.

According to the government’s release, “The crux of these reforms is to further ease, rationalise and simplify the process of foreign investments in the country and to put more and more FDI proposals on automatic route instead of government route where time and energy of the investors is wasted.”

These FDI reforms are set to benefit sectors such as agriculture and animal husbandry, plantation, defence, broadcasting, civil aviation and manufacturing. “Further refining of foreign investments in key sectors like construction where 50 million houses for poor are to be built. Opening up the manufacturing Sector for wholesale, retail and e-Commerce so that the industries are motivated to Make In India and sell it to the customers here instead of importing from other countries,” the release added..

The proposed reforms also enhance the limit of Foreign Investment Promotion Board (FIPB) from current Rs 3,000 crore to Rs 5,000 crore. The proposal also contains many other long pending corrections including those being felt by the limited liability partnerships as well as NRI owned companies who seem motivated to invest in India. Few other proposals seek to enhance the sectoral caps so that foreign investors don’t have to face fragmented ownership issues and get motivated to deploy resources and technology with full force.

India got FDI of $19.39 billion in the April-June period, according to government data, up 29.5% over the year earlier. The Modi government has been pushing hard to drum up overseas investment, easing FDI regulations in various sectors including the railways, medical devices, insurance, pension, construction and defence.

Last week, ET had reported that the government plans to launch a series of policy reforms, signalling its intent to get moving again on economic changes and putting the Opposition on notice before Parliament convenes for the winter session.

Key to the Narendra Modi government’s renewed development push will be power, labour and infrastructure, three senior government officials had told ET. Among the highlights are a revival package for power distribution companies, freeing up labour rules and a possible push for the railways, ET had said in its report.

The road map for the phasing out of corporate tax exemptions and reduction in the tax rate to 25% is being drawn up. Besides this, the Startup India, Standup India plan and the rollout of the National Investment and Infrastructure Fund (NIIF) are also being worked on.

A simpler foreign direct investment (FDI) policy, further easing of the external commercial borrowing (ECB) regime and changes in the public-private partnership (PPP) framework to attract more private investment could also announced.

Source: http://economictimes.indiatimes.com/articleshow/49735873.cms

 

India, UK strike 3.2 bn pound deal on energy, climate change

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The package encompasses 3.2 billion pounds of commercial agreements and initiatives to share technical, scientific, and financial and policy expertise.

Ahead of the Paris climate summit, India and Britain have agreed on a comprehensive package of collaboration on energy and climate change which includes commercial deals worth 3.2 billion pounds.

During Prime Minister Narendra Modi’s ongoing UK visit, the two countries reaffirmed the importance of addressing climate change and promoting secure, affordable and sustainable supplies of energy that will support economic growth, energy security and energy access.

“The UK and India’s partnership on energy is going from strength to strength. We share world-class expertise in research and innovation. The UK’s experience in green finance and technology in particular makes us well-placed to work together to promote secure, affordable and sustainable supplies of energy and address climate change,” said UK energy and climate change secretary Amber Rudd.

“The upcoming talks in Paris will be a crucial moment in the fight against climate change and I am pleased to be able to work closely with India to ensure that the deal we secure helps to keep the below 2 degree limit on global warming within reach,” she added.

The package encompasses 3.2 billion pounds of commercial agreements, joint research programmes and initiatives to share technical, scientific, and financial and policy expertise.

This is aimed at encouraging the research, development and eventual deployment of clean technology, renewables, gas and nuclear.

As part of the package, Britain also announced the UK Climate Investments joint venture with the Green Investment Bank. This will invest up to 200 million pounds in renewable energy and energy efficiency in India and Africa.

The two countries also agreed on the need for an ambitious and comprehensive global agreement to tackle climate change in Paris later this month and that the agreement should signal to investors and innovators the long term commitment of governments to clean and more sustainable economies.

Modi and his UK counterpart David Cameron also welcomed the completion of negotiations for a Nuclear Cooperation Agreement and the signing of a Memorandum of Understanding (MoU) related to closer civil nuclear collaboration between the UK and India.

 

Source: http://economictimes.indiatimes.com/articleshow/49768488.cms

 

PM Narendra Modi promises $10-bn credit line to Africa

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Promising $10 billion in credit to Africa to back a “partnership of prosperity” and pitching a broad alliance for global reform, Prime Minister Narendra Modi called for a permanent solution to the food security and agriculture subsidy issues at the Nairobi WTO meet, to be held later this year.

Addressing the inaugural session of the 3rd India-Africa Forum Summit (IAFS), Modi also made a strong pitch for deeper India-Africa ties in key areas of counter-terrorism, climate change and UN reforms. His nearly half-an-hour speech at the session was attended by 41 heads of state and government, including Presidents Jacob Zuma of South Africa, Mohammadu Buhari of Nigeria and Abdel Fattah al-Sisi of Egypt,t and hundreds of senior officials from 54 African countries.

He said India and Africa also seek a global trading regime that serves development goals and improves trade prospects. “When we meet at the Nairobi Ministerial of the WTO in December, we must ensure that the Doha Development Agenda of 2001 is not closed without achieving these fundamental objectives.”

The WTO’s General Council had accepted India’s demand for extending the peace clause till a permanent solution is found for its food stockpiling issue. For a permanent solution to the food security issue, India had proposed either amending the formula to calculate the food subsidy cap of 10%, which is based on the reference price of 1986-88, or allowing such schemes outside the purview of subsidy caps. If no solution is found by the agreed deadline of December 31, the peace clause will continue till the time a solution is found.

Calling for stronger ties in the strategic areas of counter-terrorism and climate change as well as on UN reforms, Modi told the visiting leaders, “We will raise the level of our support for your vision of a prosperous, integrated and united Africa that is a major partner for the world.”

Source: http://www.financialexpress.com/article/economy/pm-narendra-modi-promises-10-bn-credit-line-to-africa/158751/

India, Singapore to sign strategic partnership pact during PM’s visit

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Taking their bilateral ties to the next level, India and Singapore are expected to sign a strategic partnership pact during prime minister Narendra Modi’s visit to that country from November 23 to 25.

The broad contours of the agreement were also discussed during the fourth India-Singapore joint ministerial committee meeting held here on Tuesday. It was co-chaired by external affairs minister Sushma Swaraj and her Singaporean counterpart Vivian Balakrishnan.

The strategic partnership agreement would comprise expansion of cooperation in five main areas: Scaling up investment and trade; speeding up air and maritime connectivity; smart city development and urban rejuvenation; skills development and capacity building, and state focus on strengthening business and cultural links, according to a press release issued by the Singapore High Commission.

“The strategic partnership will come with deliverables and concrete outcomes, with focus on urban solutions, smart cities and knowledge and skill transfer,” Balakrishnan told reporters after the meeting.

Balakrishnan also highlighted the need to enhance connectivity between India and Singapore, particularly in the aviation sector.

He also highlighted Singapore’s contributions to India in the areas of smart cities and skills development.

“Both ministers agreed on the need to enhance economic cooperation, including expanding trade and investment between both countries,” the release stated.

This will be Modi’s second visit to Singapore as India’s prime minister. He last went there in September to attend the funeral of Singapore’s founding father Lee Kuan Yew.

Singapore is planning for a similar reception Modi had received in San Jose in US last month. He has also been chosen to deliver the prestigious “Singapore Lecture” during the visit.

Source: http://www.business-standard.com/article/economy-policy/india-singapore-to-sign-strategic-partnership-pact-during-pms-visit-115101300787_1.html