PM Modi-Wong talks: Containers to startups, why Singapore matters for India's economy

Prime Minister Narendra Modi and his Singaporean counterpart, Prime Minister Lawrence Wong, virtually inaugurating the second phase of the Bharat Mumbai Container Terminal (BMCT) at Jawaharlal Nehru Port. The inauguration was more than just the opening of a state-of-the-art port terminal—it symbolised the depth of India’s economic engagement with Singapore, its largest trade and investment partner in the Asean region.

This comes as India and Singapore look to deepen their bilateral relations amid ongoing major strategic churn. According to the Ministry of External Affairs (MEA), Wong’s three-day visit to India coincides with the 60th anniversary of diplomatic relations between the two countries, and the two leaders used this moment to underline how their partnership now stretches from ports and shipping to cutting-edge digital technologies and startups.

PSA Mumbai Terminal: A strategic boost to maritime infrastructure

The PSA Mumbai Terminal, built with more than $1 billion in investment from Singapore’s PSA International, represents one of the most ambitious collaborations in India’s maritime infrastructure. The newly inaugurated Phase-II expansion enhances the terminal’s total handling capacity to 4.8 million TEUs, making it the first dedicated freight corridor-compliant container terminal in the country.

JNPA, which already handles 54 percent of India’s containerised cargo, now gains significant additional capacity with Phase-II. With a deep draft of over 15 metres, the port can handle next-generation mega vessels with 18,000 TEU capacity. PSA Mumbai is also India’s first fully renewable-energy-powered container terminal and boasts connectivity to more than 63 inland container depots via both rail and road.

Prime Minister Modi highlighted during the inauguration that the facility would not only boost India’s trade efficiency but also embed sustainability into its logistics backbone. “Earlier today, we inaugurated Bharat Mumbai Container Terminal Phase-II, developed by Singapore’s PSA International. This milestone will further enhance our container handling capacity,” he said.

Singapore: India’s most trusted economic partner in Asean

Singapore is far more than an investor in India’s ports. It is India’s largest trade partner within Asean, accounting for nearly 28 per cent of India–Asean trade in 2024–25. Bilateral trade between the two countries stood at $34.3 billion in 2024–25. Although there was a marginal decline compared to the previous year, the long-term trend since the signing of the Comprehensive Economic Cooperation Agreement (CECA) in 2005 remains strongly positive.

On the investment side, Singapore has consistently topped the list of foreign direct investors in India. Between April 2000 and March 2025, Singapore contributed nearly $175 billion in FDI—about 24 per cent of India’s total inflows. Remarkably, around $60 billion of this came in the post-Covid period alone.

The MEA emphasised this central role in a statement: “Singapore is an important partner for India, including in our ‘Act East’ Policy. The visit reaffirms the continued commitment of the two countries to further strengthen their comprehensive strategic partnership.”

Singapore also plays a vital role in India’s external commercial borrowings and portfolio investments. Its stable and competitive financial environment makes it an attractive destination for Indian companies raising global capital, with about 9,000 Indian companies now registered in Singapore.

Five pacts to expand cooperation

During Wong’s visit, India and Singapore signed five agreements that broaden cooperation in areas ranging from shipping and civil aviation to outer space and digital infrastructure. The agreements include:

• An agreement on Green and Digital Shipping Corridors, linking Indian ports with Singaporean expertise to create efficient, sustainable maritime practices.

• A pact in the space sector, opening avenues for joint research, satellite data sharing and collaboration in space sciences.

• Expansion of collaboration in civil aviation, focussing on connectivity, safety and digital services.

• Agreements promoting advanced manufacturing, skilling and nuclear energy cooperation.

• Frameworks for cooperation in digital innovation and fintech, building on the success of UPI–PayNow cross-border payments.

Prime Minister Modi underlined the importance of these pacts as setting the “roadmap for the future of our partnership,” pointing to new frontiers such as artificial intelligence, quantum technologies, and green hydrogen.

Trade, CECA and the next phase of economic engagement

Since its signing in 2005, the CECA has been the bedrock of India–Singapore economic relations, covering trade in goods and services, investment protection, intellectual property and movement of professionals. The two sides announced a time-bound review of CECA and the Asean-India Free Trade Agreement in Goods (AIFTA) to align with current trade realities.

The Ministry of External Affairs said this would further “accelerate our bilateral trade” by reducing tariff barriers, updating recognition agreements, and expanding market access in services, including financial services and digital trade.

For India, Singapore is not only a bilateral partner but also a gateway to the broader Asean region, making its role critical in realising the objectives of the Act East Policy.

Beyond trade: Startups, innovation and digital economy

Singapore’s importance also lies in its role as a hub for technology and innovation, areas that India is increasingly prioritising. Modi and Wong both emphasised startups and digital cooperation as pillars of future growth.

The two leaders noted the success of fintech collaborations such as UPI–PayNow, which now connects 13 Indian banks to Singapore’s payment system. Plans are underway for the next India–Singapore Hackathon to link young innovators from both countries in fields like artificial intelligence, quantum computing and digital security.

Singapore is also collaborating with India in skilling initiatives. A National Centre of Excellence for Skilling is being set up in Chennai with Singapore’s support, focussing on advanced manufacturing. This comes at a time when India is seeking to equip its workforce for high-value industries like semiconductors, an area where Singaporean companies already play an active role.

Green energy and connectivity initiatives

One of the most ambitious proposals under discussion is the export of renewable energy from India to Singapore via an underwater cable, which could also carry data connectivity. While the feasibility study flagged challenges posed by the Andaman Trench, both sides remain committed to exploring the project as part of a broader effort to build a green energy corridor.

Other potential collaborations include exports of green hydrogen and green ammonia from India to Singapore, aligning with both nations’ climate commitments.

Regional and strategic significance

India and Singapore’s partnership also carries strategic weight in the Indo-Pacific. Both countries share concerns about terrorism, regional stability and the need for open sea lanes. Modi thanked Wong for Singapore’s solidarity in the aftermath of the recent Pahalgam terror attack, highlighting their security cooperation.

Singapore’s expertise in maritime logistics complements India’s push to modernize its port infrastructure, while India’s growing role as a manufacturing hub offers opportunities for Singaporean investors to diversify supply chains. Together, the two nations act as stabilisers in the larger Asean–Indo-Pacific framework.

A partnership with purpose

As Prime Minister Modi concluded in his remarks, the India–Singapore partnership is “a partnership with purpose, rooted in shared values, guided by mutual interests, and driven by a common vision for peace, progress and prosperity.”

From container terminals to digital startups, from renewable energy to fintech corridors, the breadth of engagement reflects a deep trust built over decades. With bilateral ties elevated to a Comprehensive Strategic Partnership and a forward-looking agenda in place, Singapore is poised to remain a vital anchor in India’s economic, technological and strategic future.