Since the early 1990s, India’s ‘Look East’ policy and the tangible steps taken toward economic liberalisation coincided with Singapore’s ‘India Fever’ for diversifying the island nation’s choices in terms of business opportunities and defense parameters thus, heralding a paradigm shift. The spate of high profile visits between India and Singapore in 2002 and 2003 underline the significance New Delhi and Singapore attach to each other for widening the window of opportunities and in forging closer economic and security links.

The visit of Singapore Defense Minister, Teo Chee Hean and his talks with his Indian counterpart, Mr. George Fernandes on defense and military matters, in October 2003, resulted in a new defense cooperation accord. As part of this agreement, both countries agreed to personnel training, intelligence exchanges, and regular naval exercises.

This defense agreement further institutionalized India-Singapore military ties 1991 India has welcomed visits by naval ships from Singapore to Port Blair as well as at Vishakhapatnam since 1991. Since 1995, Singapore and other South East Asian countries like Thailand, Malaysia, and Indonesia have taken part in joint military exercises with India, named, MILAN, to promote confidence-building and cohesion among the participating nations. Singapore has also engaged in joint naval exercises with India, including anti-submarine warfare, search and rescue operations, and in conducting joint anti-piracy exercises around the Straits of Malacca and the Bay of Bengal. The joint patrolling of the seas by the two nations has been extremely helpful in protecting the commercial sea lanes, cutting off drug trafficking, curbing arms smuggling and preventing maritime terrorism. Since 9/11, India and Singapore have also shared vital intelligence on issues related to international terrorism in cooperation with the US. With foreign companies being allowed to have up to 26 percent of the equity in India’s defense sectors, there are prospects for cooperation in the defense industry area for Singapore based technological firms that are looking for market expansion and joint marketing through mutual profitable ventures among other South East Asian nations.

Singapore and India also figure in the US regional security arrangements in South East Asia, as there are plans for a new security system to empower Asia-Pacific democracies, an Asian NATO. This arrangement, if it materializes, will do two things. One, it will permit the US to relocate its troops from the demilitarized zone separating North and South Korea  from the Japanese island of Okinawa. And, two, it will provide India and Singapore significant leverage in reorienting their relationship with the United States in Asia-Pacific affairs.

Similarly, on matters of trade and commerce, India and Singapore have launched a Comprehensive Economic Cooperation Agreement (CECA) during Prime Minister Goh Chok Tong’s visit to India in April 2003. Once implemented, this agreement will have far reaching benefits for both nations leading to increasing investment flows and greater exchanges in knowledge-based and professional services. A number of Singapore mega agencies like Infocomm Development Authority of Singapore (IDA), Agency for Science, Technology and Research (ASTR), International Enterprise Singapore (IES), Building and Construction Authority (BCA) and Economic Development Board (EDB) have evinced keen interest in investing in the Indian market.

The enhanced economic partnership between India and Singapore can be gauged from the following facts. In 2001, India was Singapore’s 15th largest trading partner, 20th largest import source, and 14th in the export market. While bilateral trade with India was S$2.4 billion in 1991, it increased nearly three-fold to S$6.9 billion in 2001. An upward trend is being forecast for subsequent years. Goh’s visit to India in 2003 that followed Vajpayee’s 2002 visit to Singapore also covered a free trade agreement, an open sky policy for charter flights from both countries, and avoidance of double taxation.

On the international front, Singapore has played a key role in ensuring India’s inclusion in ASEAN, first as a Sectoral Dialogue Partner (Singapore, 1992) and than as a Full Dialogue Partner (Bangkok, 1995) which, in turn, facilitated India’s entry into the ASEAN Regional Forum (ARF). Singapore has also constantly supported India’s bid for a permanent Security Council seat in the United Nations. With a shared vision of the regional economic and strategic environment and with no conflicts in terms of basic national interests, India and Singapore are likely to forge a more coordinated and proactive approach in the years to come. In this context, India’s support for ASEAN’s Treaty of Amity and Cooperation and endorsement of the South East Asia Nuclear Weapon Free Zone, made at the October 2003 Bali Summit bode well for the future.