SINGAPORE: A June 12 ANI piece that took a look at why more Singapore manufacturers have moved to India of late said that the number of firms from Singapore that have partnered with EnterpriseSG to enter India went up by 40 per cent last year, with manufacturing, information and communications and professional services as the top three sectors represented.
It added that in 2014, when Prime Minister Narendra Modi launched the “Make in India” campaign, more manufacturers were attracted to set up shop in India, with the government making it easier for foreign firms to do so.
In the World Bank’s Ease of Doing Business Index, India went from 130th place to 63rd place out of 190 countries between 2016 and 2019.
Apple, Samsung, Kia, Boeing, Siemens, and Toshiba are among the companies that are looking to bring a considerable amount of manufacturing to India, ANI added, noting that Singapore companies, while traditionally looking to its manufacturing needs to China and South East Asian countries, seems to be following suit.
“Among Singapore firms that have shifted their operations to India are contract manufacturers who support and supply larger large multinational corporations (MNCs), some of whom have relocated to India.”
These companies have been aided by Enterprise Singapore (EnterpriseSG) to avail of the economic benefits in India because of favourable policies and India’s general economic outlook.
EnterpriseSG, under the Ministry of Trade and Industry of the Government of Singapore, is a statutory board that targets supporting the development of Singapore’s SMEs (small and medium enterprises).
There has been healthy bilateral trade between the two countries, with India being Singapore’s 12th biggest trade partner and Singapore being the sixth largest trade partner. India has a 2.3 per cent share of Singapore’s overall trade, while Singapore has a 2.9 per cent share of India’s overall trade.
For fiscal year 2021 to 2022, FDI (foreign direct investment) equity flows from India to Singapore were at US$18.41 billion (S$24.7 billion), while FDI equity from Singapore to India was USD 15.87 billion (S$21.3 billion).
“Cumulatively, Singapore is the second largest investor in India with US$140.99 billion (S$189 billion) invested in India from April 2000 to September 2022,” the ANI piece added. /TISG