India, Singapore firms invest $51b in each other's markets
Aug 15 2014 , Singapore
Singapore was India's largest investor last year with $5.98 billion, or a quarter of the inflow, and $26 billion accumulatively since 2000, reported Tabla!, an English language weekly here today.
Comparatively, Indian companies have made accumulative investment of close to USD 25 billion in Singapore, said the tabloid in a report on 50 years of India-Singapore Diplomatic relations.
"The Indian FDI (Foreign Direct Investment) into Singapore has grown at a whopping compounded annual growth rate of 381 per cent since 2005," said Anil Kishora, country head and Chief Executive Officer of the State Bank of India in Singapore.
The investment was especially boosted by the India-Singapore Comprehensive Economic Cooperation Agreement signed in 2005.
The tabloid pointed out that Indian investment in Singapore has surpassed China's USD 14.2 billion during the same time.
Some 6,000 Indian companies are registered in Singapore at the latest count, making it the largest business community in the city state. Two years ago, the number was 4,000, according to Indian businessmen.
Tata Group's activities in Singapore today are a microcosmic representation of its USD 100 billion ventures across 100 companies worldwide, said K V Rao, Tata's Singapore-based resident director for the Asean region.
Analysts said Indian companies see a growing international business opportunities to be in Singapore, especially using it as a platform to venture into the region and the world as they globalize.
Singapore is a major routing point for setting up holding companies that are used for international investment in Asia or globally, as it is an international financial centre with easier financing and refinancing schemes.