India, S’pore to explore ‘innovative ways’ to boost financial cooperation
Indian Prime Minister Narendra Modi walks with Singaporean Prime Minister Lee Hsien Loong prior to a meeting in New Delhi on Oct 4, 2016. Photo: AFP
NEW DELHI – Deputy Prime Minister Tharman Shanmugaratnam and India’s Finance Minister Arun Jaitley have been tasked to explore “new and innovative ways” to enhance financial cooperation between the two countries and create mutually beneficial outcomes.
This was announced by Prime Minister Lee Hsien Loong on Tuesday (Oct 4), following a meeting with his India counterpart Narendra Modi.
Speaking at a joint press conference with Mr Modi, Mr Lee noted that Singapore was one of India’s largest sources of foreign direct investment last year. In turn, there are more than 8,000 Indian companies in Singapore. “We should facilitate these investment flows, and we discussed how India and Singapore can deepen our financial cooperation,” said Mr Lee.
Both leaders have also agreed to expedite the second review of the India–Singapore Comprehensive Economic Cooperation Agreement (CECA), said Mr Modi. He added that trade and investment ties “form the bedrock” of the bilateral relationship.
The landmark CECA was signed in June 2005 during Mr Lee’s first state visit to India as Singapore’s prime minister. It came into force in August that year and includes tariff concessions, favourable tax breaks for investments, easing of market entry norms for certain services, and provisions for a freer flow of professionals between India and Singapore. The first review took place in 2006.
To facilitate greater business-to-business collaborations between both countries, a memorandum of understanding was signed on Tuesday on industry property cooperation. The agreement will encourage Indian companies to use Singapore as a regional intellectual property (IP) hub for their innovation-related activities. Areas of collaboration include the developing IT systems to manage IP processes and the exchange of experts to deepen IP capabilities.
Both leaders also welcomed the issuance of corporate Rupee bonds in Singapore. “It is a step forward in our efforts to mobilise capital for India’s large infrastructure development needs,” said Mr Modi.
During the meeting, Mr Lee and Mr Modi also discussed ways to strengthen air connectivity between Singapore and India — which would “send a strong signal to the world that India is serious about attracting investments and businesses”, Mr Lee said.
On Sunday, Singapore low-cost carrier Scoot launched its maiden flight from Singapore to Jaipur, which is the 15th Indian city to be connected directly to the Republic.
