India and China share many similarities, both being rising economies in Asia with the world’s largest populations. They boast successful high-tech sectors alongside areas needing economic development. While China is currently ahead, India is undeniably a looming global power with significant influence.
Background
One unexpected similarity between India and China is that both count Singapore as a major foreign investor. This was highlighted during Indian Prime Minister Narendra Modi’s visit to Singapore in early September 2024. Despite the visit being brief, it was significant, with both nations agreeing to elevate their relationship to a Comprehensive Strategic Partnership. Several agreements were signed, including one for Singapore to assist India with its semiconductor industry. This visit was Modi’s first overseas trip since being re-elected for a third term.
FDI king
Singapore’s role as a significant foreign investor in India was underscored during Modi’s visit. Deputy Prime Minister and Minister for Trade and Industry, Gan Kim Yong, stated, “This MOU signals India’s and Singapore’s commitment to work together in the field of semiconductors to address the demand from industries around the world.” Singapore has been active in India’s economy since it opened up in 1991, accounting for nearly 23 per cent of foreign direct investment (FDI) flows in the past two decades.
Friendship photo
The visit also showcased the warm personal relationship between Modi and Singaporean Prime Minister Lawrence Wong. A TikTok video showed Modi requesting a “friendship photo” after the formal protocol photo, grabbing Wong in a sideways bearhug. This warmth was further highlighted when Modi complimented Wong’s sitar playing during Deepavali 2023. The two leaders have met before, notably during the first India-Singapore Ministerial Roundtable (ISMR) in 2022.
Decades-old relationship
Singapore’s long-term approach to its relationship with India was noted by Deputy Prime Minister Heng Swee Keat during the Singapore-India Forum on September 5. Singapore has been a key player in India’s economy since the early 1990s. Modi’s premiership overlaps with former Prime Minister Lee Hsien Loong, and he also met with Lee’s predecessor Goh Chok Tong, who was a strong advocate for Singapore’s investment in India.
Maxed out the relationship bar
As Singapore and India celebrate 60 years of diplomatic relations in 2025, their relationship extends beyond economics. India is a crucial source of food for Singapore, being the top exporter of rice. When India enacted a rice export ban, Singapore was one of the few countries exempted. The cooperation also includes MOUs for digital cooperation, education, healthcare, and aviation, with Singapore being a major provider of aviation-related services.
Non-alignment
India’s non-aligned stance in international relations is similar to Singapore’s approach. Both nations are self-interested but open to cooperation. Good relations with India are not just economically beneficial but also serve as a geopolitical hedge.
Thucydides trap
The concept of the Thucydides Trap, where a rising power inevitably conflicts with an established one, is often applied to China and the United States. However, the lesson from history is that outcomes are uncertain, and it is crucial to maximise options. Singapore’s relationship with India exemplifies this strategy, providing a vital hedge in a turbulent world.
