India-Singapore ties strong but the need for caution remains

THE reiteration of close economic ties between Singapore and India, by the prime ministers of both countries last week, will come as a relief for businessmen who are looking for increased trade linkages.

Given the backdrop of the sudden arbitration spat between Singapore Exchange and the National Stock Exchange of India over an offshore futures contract as well as scuppered talks on a cross-border trading link, this assurance is timely.

Indian Prime Minister Narendra Modi and his Singapore counterpart have agreed to deepen economic ties and build on defence cooperation. During Mr Modi's visit, a number of deals were discussed which are likely to take the cooperation between the two countries forward. The second review of the Comprehensive Economic Cooperation Agreement between the two nations has been completed and both leaders also announced that a third round of discussions on the pact would start soon and may include expanding the air services agreement between the two countries.