India Singapore Bilateral Agreement

India-Singapore Bilateral Agreement: Boosting Trade and Investment

India and Singapore have always shared a special relationship, which has only strengthened over the years. The two nations have been working together on various fronts, including security, defense, and trade. Recently, the two countries signed a new bilateral agreement that promises to take their partnership to greater heights.

The new agreement, known as the India-Singapore Comprehensive Economic Cooperation Agreement (CECA), was signed in June 2005 and came into effect in August 2005. This agreement marks a significant milestone in the bilateral relations between India and Singapore, as it covers a wide range of areas, including trade in goods and services, investment, intellectual property, and customs cooperation.

The CECA has been instrumental in boosting trade and investment between the two countries. In 2019-20, the bilateral trade between India and Singapore was worth US$ 17.6 billion. India`s exports to Singapore were valued at US$ 9.8 billion, while imports from Singapore were worth US$ 7.8 billion. Singapore is India`s second-largest trading partner in the ASEAN region and the tenth largest in the world.

One of the key features of the CECA is the reduction of tariffs on goods traded between India and Singapore. Under the agreement, Singapore has provided tariff concessions on about 95% of its tariff lines on Indian exports. Similarly, India has provided concessions on about 75% of its tariff lines on Singaporean exports. These tariff concessions have made it easier and cheaper for businesses in both countries to trade with each other.

The CECA has also been instrumental in promoting investment flows between India and Singapore. Singapore is the second-largest foreign investor in India, with cumulative investments of over US$ 85 billion as of June 2020. The CECA provides for greater protection and facilitation of investments between the two countries. It also allows for the free movement of skilled professionals, making it easier for businesses to hire talent from either country.

The CECA has also been beneficial in promoting intellectual property rights (IPR) protection and cooperation between India and Singapore. Both countries have agreed to provide stronger IPR protection for businesses and individuals operating in each other`s jurisdictions. They have also agreed to collaborate on capacity-building programs and exchange information and best practices on IPR-related issues.

Overall, the India-Singapore CECA has been a game-changer for the bilateral relations between the two countries. It has created a level-playing field for businesses in both countries, promoting trade and investment, and strengthening their economic ties. With the recent upgrade of the CECA, which includes a new chapter on digital trade, the partnership between India and Singapore is set to reach new heights in the coming years.