Context

India is intensifying its economic outreach across Asia, engaging with Singapore and the Association of Southeast Asian Nations (ASEAN) to expand market access, update trade agreements, and enhance cross-border connectivity. This focus comes amid recently announced US reciprocal tariffs on a range of Indian goods, a move that could potentially impact export earnings in one of India’s largest trading markets. These developments have reinforced New Delhi’s strategy to diversify trade relationships and deepen economic engagement with fast-growing Asian partners.

• India hosted the 4th meeting of the India-Singapore Joint Working Group on Trade & Investment (JWGTI) on 12 August 2025. The meeting focused on trade facilitation, investment promotion, supply-chain resilience, and regulatory streamlining.
• The discussions coincided with the 60th anniversary of diplomatic relations between India and Singapore and the 20th anniversary of the Comprehensive Economic Cooperation Agreement (CECA). This underlined Singapore’s role as a regional trade and investment hub and India’s standing as one of the fastest-growing large economies.

Key points of India-Singapore Trade Engagement:

• • • • Deepening bilateral trade and investment ties.

      • Identifying priority sectors for greater alignment.

      • Improving logistics and supply chains.

      • Streamlining regulatory frameworks.

      • Exploring measures to facilitate cross-border trade.

These discussions reflect India’s broader efforts to strengthen its economic footprint in Southeast Asia while mitigating risks posed by external trade barriers.

ASEAN-India Trade Engagement

In parallel, India hosted the tenth meeting of the ASEAN-India Trade in Goods Agreement (AITIGA) Joint Committee from 10 to 14 August 2025, alongside seven sub-committee sessions aimed at updating the 15-year-old pact. Co-chaired by Nitin Kumar Yadav, India’s Additional Secretary in the Commerce Department, and Mastura Ahmad Mustafa, Malaysia’s Deputy Secretary General for Trade, the discussions built on eight previous negotiation rounds.

The review seeks to make AITIGA more effective, accessible, and conducive to trade. Technical discussions covered:

• • • • Customs procedures and trade facilitation.

      • Market access improvements.

      • Sanitary and phytosanitary measures.

      • Rules of origin and technical standards.

      • Trade remedies and regulatory harmonisation.

The next AITIGA joint committee meeting is scheduled for 6–7 October 2025 at the ASEAN Secretariat in Jakarta, Indonesia, hosted by Malaysia.

Economic Significance of Singapore and ASEAN for India

Singapore and the ASEAN bloc remain critical partners for India’s trade and investment objectives.

Trade Data:

• • • • In FY25, India’s goods exports to ASEAN declined by 5.45% year-on-year to $38.96 billion, while imports rose by 5.64% to $84.16 billion.
      • Singapore is India’s largest trading partner within ASEAN, with total bilateral trade reaching $34.26 billion during 2024–25.

Investment Data:

• • • • Singapore is India’s second-largest source of foreign direct investment, with cumulative equity inflows of $163.85 billion (₹11.24 trillion) between April 2000 and July 2024, representing roughly 24% of India’s total FDI inflows.

These figures highlight Singapore’s dual role as both a trading partner and an investment hub, reinforcing its strategic significance for India’s economic engagement in the region.

India-Singapore Relations: Political, Diplomatic, and Military Dimensions

India and Singapore share a longstanding strategic partnership, formally announced in 2015, and Singapore is a key pillar of India’s Act East Policy. Their cooperation spans political, diplomatic, and security domains.

Military Cooperation:

• • • • Both countries conduct joint military exercises and exchange defense equipment.
      • SIMBEX: Annual bilateral naval exercise between the Indian and Singapore navies.
      • Agni Warrior: Joint military exercise between the Indian Army and Singapore Armed Forces.

Economic Cooperation:

• • • • Singapore ranks among the largest foreign investors in India.
      • The Comprehensive Economic Cooperation Agreement (CECA) has significantly boosted bilateral trade and investment.
      • Singapore is India’s sixth-largest trading partner overall, accounting for 3.2% of India’s total trade.
      • In FY23–24, bilateral trade reached $35.61 billion.

These ties demonstrate a multidimensional relationship that combines economic growth, strategic collaboration, and regional security alignment.

Strategic Objectives of India’s Economic Outreach:

India’s intensified engagement with Singapore and ASEAN aims to:

1. 1. 1. 1. Diversify Trade Partners: Reduce dependency on traditional markets, particularly in light of US tariffs.

         2. Strengthen Supply Chains: Enhance logistics and trade facilitation for resilience.

         3. Attract Investments: Leverage Singapore’s position as a regional financial hub to boost foreign direct investment.

         4. Update Trade Agreements: Modernise AITIGA and CECA frameworks to reflect contemporary market and regulatory realities.

         5. Enhance Connectivity: Promote cross-border trade and infrastructure development for seamless economic integration.

These objectives reflect India’s broader regional economic strategy, which seeks both resilience and growth in a rapidly evolving global trade environment.

Challenges and Opportunities:

Challenges:

• • • • Declining exports to ASEAN amid rising US tariffs.

      • Complex regulatory frameworks that require constant updating.

      • Coordination across multiple ministries and partner countries for trade facilitation.

Opportunities:

• • • • Strengthened engagement with fast-growing ASEAN economies can offset pressures from traditional markets.

      • Singapore’s expertise in supply chains, industrial parks, and high-value investments can be leveraged for domestic industrial growth.

      • ASEAN’s integrated markets offer India scope for scaling exports in goods and services, including technology, pharmaceuticals, and services.

Way Forward

To consolidate these gains, India needs to:

• • • • Maintain consistent and predictable trade policies.

      • Improve logistics and cross-border connectivity with ASEAN partners.

      • Facilitate investor-friendly regulatory frameworks to attract sustained FDI.

      • Leverage Singapore and ASEAN experience for capacity-building and technology transfer.

      • Continue diplomatic engagement to align economic objectives with geopolitical priorities.

Conclusion:

India’s strengthened economic engagement with Singapore and ASEAN reflects a proactive strategy to diversify trade, deepen investment ties, and enhance regional connectivity. While challenges like US tariffs and regulatory complexity persist, India’s systematic approach—through CECA, AITIGA, and joint working groups—positions it as a resilient and forward-looking partner in Asia. With sustained focus on trade facilitation, investment promotion, and cross-border collaboration, India can strengthen its role as a leading economy in the Indo-Pacific, while safeguarding its long-term economic and strategic interests.