Interactive Meeting with Mr George Yeo, Hon'ble Minister for Trade & Industry, Singapore
November 26, 2002, New Delhi

Address by Mr R S Lodha, President, FICCI

Mr George Yeo, Hon'ble Minister for Trade & Industry of Singapore,
Mr Rajiv Pratap Rudy, Hon'ble Minister of State for Commerce & Industry, Govt of India,
HE Mr Chak-Mun See, High Commissioner of Singapore in India,
Senior Government Officials,
Distinguished participants,
Ladies & Gentlemen.

It gives me a great pleasure to extend a warm welcome to you all this afternoon. We are privileged to have amidst us today, the Hon'ble Minister for Trade & Industry of Singapore, Mr George Yeo. We are grateful to him for having taken time out from his busy schedule to express his views on the growing commercial synergies between India and Singapore.

May I mention here that the recently concluded India-ASEAN Business Summit, co-organised by FICCI along with the MEA and MOC&I, attracted participation of the largest ever delegation from Singapore, comprising 46 members led by the Minister of State for Trade & Industry of Singapore, Mr. Tharman Shanmugaratnam. This first Business Summit between India and the ASEAN focussed on the opportunities available for doing business with India. Over 200 business networking meetings were organised during the course of the Summit at both New Delhi and Hyderabad.

We hope this Business Summit, which would be an annual feature, would further enhance trade between India and the ASEAN which has already crossed the US$ 10 billion mark and if we look at Singapore in the total ASEAN trade matrix - the trade links between India and Singapore grew at a compounded annual growth rate of 10.5 percent during the last decade and in 2001-2002 stood at US $ 2261.28 million. This is poised to take-off further. Several areas for closer interaction were identified during the course of the Summit including IT, biotechnology, infrastructure, human resource development and media. Singapore is already India's largest trading partner in the ASEAN.

In terms of investment, approximately US $ 1.35 billion from Singapore have been approved since 1991, making it the second- largest investor from the ASEAN region in India. However, Singapore is by far the largest investor from the region when it comes to actual FDI inflows during the period (US $ 0.4 billion till June 2002). Singapore has been granted 105 technical collaborations since 1991 in sectors like Electronic Equipment, Hotel, Tourism, Food Processing Industries, Chemicals and Engineering. There are more than 37 approved Indian joint ventures in Singapore and more than 30 wholly owned subsidiaries. Therefore, the two-way flow of trade and investments between the two countries is on the upswing.

To quote you Sir, " There is almost complete agreement on the importance and the mutual benefit of close relations between India and Singapore. We share a common vision of the future and a common interest in a greater coordination between the two sides." India looks forward expectantly towards more meaningful interactions with Singapore, a country that has in your words, I quote again, positioned itself "strategically to be a long-term partner of India". The report of the Joint Study Group established between our two countries to identify future areas of mutual collaboration is likely to provide a sustainable foundation to this relationship.

As far as India is concerned, its strategic 'Look East' Policy clearly underlines its intentions to develop closer ties with the ASEAN states. Economic engagement between the ASEAN countries and India has considerably improved in recent years. Besides, India's gradual transition from an 'inward-looking', protective economic system to a more market-oriented, outward-looking economic framework has also succeeded in enhancing mutual economic ties.

At first glance, Singapore and India may appear to be incompatible in their respective size - geographic and demographic. However, there are unusual similarities between our two countries which now need to be fructified into profits and wealth creation. Singapore has embarked on the "KISE Model" of Knowledge Capital, Imagination Capital, Social Capital and Emotional Capital, while India has already established itself as the IT leader in the world and is in the process of establishing itself as the biotech front runner. A match between your biotech research platforms and our gene pools can provide major business opportunities and the cutting edge. With proper safeguards and due clearances, we can offer massive scope for clinical trials for drug development.

To quote Mr Arun Shourie, Union Minister for Disinvestment, " For India, Singapore is a catalyst" as it is the hub for more than 6000 multinational companies and could serve as an ideal gateway for Indian companies seeking to occupy mind-share and shelf-space in the global arena. This will also help Indian companies to benchmark themselves against the leading companies in the world and to adopt best practices.

India is fully committed to the path of economic reforms and the visionary steps taken by the Ministry of Commerce & Industry in this connection have led to renewed interest in India Inc worldwide. Singapore is no exception. The times ahead promise to be challenging and rewarding. We at FICCI are honoured to be a part of this process.

May I welcome you all once again with the hope that today's deliberations would lend further impetus to the intensification of Indo-Singaporean trade and investment ties.

Thank you.