India and Singapore Re-Establish Bilateral Business Relationship
Singapore and India’s business chambers of commerce inked a bilateral cooperation agreement last week to strengthen the trade and investment ties between the two countries.
The agreement, which was signed by the Singapore Business Federation (SBF) and the Federation of Indian Chambers of Commerce and Industry (FICCI), seeks to expand the investment relations, joint ventures, and overseas expansion opportunities between Singapore and India and with other countries.
Bilateral business relations will be enhanced through a series of steps which include the exchange of economic delegates, the adoption of common strategies, the exchange of information regarding the betterment of both countries’ economic position, and the announcement of India-Singapore trade alliance.
The move was a result of Singapore Prime Minister Lee Hsien Loong’s Indian state visit where he met with Indian Prime Minister Manmohan Singh and other government leaders to discuss business and political matters.
Singapore and India have already collaborated on several treaties during the past twenty years which include the Comprehensive Economic Cooperation Agreement (CECA), which significantly improved the trade income from US $8.7 million to US $21.81 billion in six years.
The two countries have also entered a Double Taxation Avoidance Agreement (DTAA), which removes the burden of double taxation for business entities from India that would like to further expand their operations in Singapore.
Indians make up nine percent of the Singapore population. The race is one of the four nationalities recognised by Singapore that have birthed its nation. There are currently 3,000 Indian companies in Singapore.
Singapore boasts of a business-conducive environment and open economy that allows foreign entities to plant their roots into its many industries. This has helped boost Singapore’s reputation as a global business and financial hub in the region.
The country also boasts of world-class amenities and affordable tax rates for expats and foreign companies. In fact, it has recently been named as “the most livable city” by expatriates.