May 5 – The number of Singaporean companies establishing businesses in India is forecast to double in the next five years, according to a senior executive from Standard Chartered Bank.
As of 2006, Singapore has invested US$3 billion in India and total investments are expected to continue growing to US$5 billion this year and US$10 billion by 2015. “We see more than one company from India setting up office in Singapore every day,” said Ravi Manchanda, Standard Chartered Bank managing director for business and corporate developments for Singapore and India trade during an interview with the Press Trust of India.
More Indian-based companies are also expected to set up business in the island nation from about 4,000 companies to an estimated 5,500 companies within the next 18 months.
“Indian companies also love to do business in and via Singapore with the rest of the East Asia, including China. They enjoy the benefits of Singapore’s free trade agreements with the rapidly-expanding economies of China and southeast countries,” he pointed out.
“Though Singapore companies tread with caution while investing overseas, they view India as one of the biggest profit-generating markets in the world,” he went on to say adding that, “India has a huge business potential and Singapore is a gateway to fast-expanding Asian economies.”
India and Singapore are signatories to the Comprehensive Economic Cooperation Agreement (CECA) since 2005 that aims to liberalize the expansion of their domestic markets through economic integration. It is the first Indian agreement to include goods, services, provisions on investment protection and a double taxation treaty as well the first comprehensive economic pact between India and a Southeast Asian country.
CECA works to India’s advantage by giving it easier access to the island nation’s excellent infrastructure facilities and managerial and technical expertise.
During the first two months of the year, bilateral trade between Singapore and India expanded by 29 percent from US$2.41 billion to US$3.11 billion compared to the same period last year. Indian exports to Singapore grew by 42.5 percent to US$1.36 billion and imports rose by 20 percent to US$1.75 billion.
