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India Shining In Singapore
June 2008 | India Practice | Regional | Regional Reports

India and Singapore have historically enjoyed strong bilateral ties, underscoring the close economic relationship between the two countries.
 
In 2007, India topped the private equity league. This is an impressive milestone in India's growth. Closer scrutiny reveals that Singapore sourced funding is a significant contributor to this milestone. India's leading position in the ranking was marked by the single largest private equity deal in Asia last year - the US$1 billion Infratel transaction, an investment by a consortium of investors, led by Singapore's Temasek Holding, into Bharti Infratel, a subsidiary of India's largest telecommunication company.
 
The implementation of the Indo-Singapore Comprehensive Economic Co-operation Agreement (CECA) in 2005 has resulted in new heights in bilateral co-operation and investment growth. Singapore is now India's fourth largest cumulative investor contributing over US$2.2 billion of foreign direct investment. Indian companies in Singapore now account for the third largest overseas group with over 3,000 companies registered in Singapore.
 
As an extension of CECA, Singapore law is increasingly being adopted in Indian cross-border transactions. Both India and Singapore share a common law heritage. However, unlike the UK, India and Singapore are not constrained by regional treaties such as the EU. Therefore, as Indian businesses establish foreign footprints and engage in more cross-border transactions, Singapore law courts and arbitration centres are increasingly being offered as familiar and reliable options.
 
"India Fever" has indeed hit Singapore and the heightened co-operation on many fronts will no doubt augur well for further growth and development of Indian businesses in and out of Singapore.