India, Singapore to deepen ties in semiconductors, digital payments, health, green energy
India and Singapore held their fourth Ministerial Roundtable, reviewing progress under the Comprehensive Strategic Partnership across semiconductors, digital connectivity, healthcare, skills and green energy
An MoU was exchanged between the Food Safety and Standards Authority of India (FSSAI) and the Singapore Food Agency (SFA) to enable technical information-sharing on food safety and facilitate bilateral trade in agri and food products
Both sides reaffirmed cooperation on the UPI-PayNow real-time payment linkage, semiconductor ecosystem investment, and green hydrogen supply chains
A "Green Lane" facilitation mechanism for semiconductor-sector movement of goods and expertise between the two countries was discussed for rollout
India-Singapore Comprehensive Strategic Partnership (CSP)
India and Singapore elevated their bilateral relationship to a Comprehensive Strategic Partnership in 2015, and the framework has since been the umbrella under which sector-specific pacts (semiconductors, skills, digital, defence, fintech) are negotiated through periodic Ministerial Roundtables. Singapore is one of India's largest sources of FDI and a key gateway for Indian outward investment into ASEAN.
Key Details
- CSP status conferred during the 2015 visit; reviewed periodically through the India-Singapore Ministerial Roundtable (ISMR) mechanism
- Singapore has consistently ranked among the top sources of FDI equity inflow into India (often the largest single-country source route, partly due to routing via Singapore-based holding structures)
- Singapore is a founding ASEAN member; India's "Act East Policy" treats Singapore as a key node for South-East Asian engagement
The fourth Ministerial Roundtable is a scheduled review mechanism under the CSP, used to formalise new sectoral MoUs such as the FSSAI-SFA food safety pact.
UPI-PayNow Cross-Border Real-Time Payment Linkage
The Unified Payments Interface (UPI), India's real-time payment system operated by the National Payments Corporation of India (NPCI), was linked to Singapore's PayNow system to allow direct, low-cost, real-time person-to-person remittances between the two countries without an intermediary correspondent bank.
Key Details
- Linkage launched on 21 February 2023 by the Reserve Bank of India (RBI) and the Monetary Authority of Singapore (MAS)
- First cross-border real-time payment system linkage in the world to use cloud-based infrastructure and to allow participation by non-bank financial institutions
- Traces back to a 2021 MoU between RBI and MAS; conceived following discussions during a 2018 prime ministerial visit
- Complements India's other cross-border UPI linkages (UAE, France, Sri Lanka, Mauritius, Bhutan, Nepal)
The Roundtable reviewed continued growth of UPI-PayNow transaction volumes as part of the "digital payments" pillar of the deepened partnership.
FSSAI and the Food Safety and Standards Act, 2006
The Food Safety and Standards Authority of India (FSSAI) is the statutory body established under the Food Safety and Standards Act, 2006 to lay down science-based standards for food articles and regulate their manufacture, storage, distribution, sale and import. Bilateral MoUs like the one with Singapore's SFA typically enable exchange of technical/regulatory information to smooth food and agri-trade rather than create binding trade obligations.
Key Details
- Food Safety and Standards Act enacted in August 2006; consolidated multiple earlier food laws (Prevention of Food Adulteration Act, 1954, etc.)
- FSSAI formally established on 5 September 2008; became fully operational from 2011 after rules and regulations were notified
- Headquartered in New Delhi; headed by a Chairperson with regional offices in Delhi, Mumbai, Kolkata and Chennai
- Functions include standard-setting, licensing/registration of food businesses, and international coordination on food safety and phyto-sanitary standards
The FSSAI-SFA MoU is a technical cooperation instrument (non-tariff facilitation), distinct from a trade agreement, aimed at easing agri-food trade through mutual regulatory recognition and information exchange.
Semiconductor Ecosystem Cooperation
India's semiconductor push rests on the India Semiconductor Mission (ISM), approved in December 2021 with an outlay to incentivise fabs, display fabs, and Outcome-Specific Semiconductor Laboratories (OSAT/ATMP) units. Singapore, a global semiconductor hub for advanced packaging and design, is being positioned as a source of ecosystem investment and supply-chain partners for India's fabs.
Key Details
- India Semiconductor Mission approved with an outlay of ₹76,000 crore (December 2021), administered by the Ministry of Electronics and Information Technology (MeitY)
- Singapore hosts global semiconductor majors and is a key node in the Asia-Pacific chip supply chain
- A "Green Lane" mechanism, discussed at the Roundtable, is intended to speed up cross-border movement of semiconductor goods, equipment and personnel between the two countries
The Roundtable's semiconductor discussions build on the ISM framework by seeking to draw Singapore-based ecosystem and supplier investment into India's under-construction fab and packaging capacity.
- Fourth India-Singapore Ministerial Roundtable held in Singapore
- UPI-PayNow linkage: launched 21 February 2023; H1 2026 transaction value approaching S$21 million
- FSSAI established 5 September 2008 under the Food Safety and Standards Act, 2006
- India Semiconductor Mission outlay: ₹76,000 crore, approved December 2021
- India-Singapore Comprehensive Strategic Partnership dates to 2015