India and Singapore agree to enhance their cooperation on semiconductors as nations aim to bolster their partnership.

• During Narendra Modi's two-day visit to Singapore, which began on Wednesday after a trip to Brunei, an announcement was made.
• In a meeting with Wong, Modi stated that Singapore is not merely a partner, but an inspiration for every developing country. He expressed his desire to create several Singapores in India.

On Thursday, India and Singapore inked memorandums of understanding on cooperation in semiconductors, digital technologies, skill development, and health care.

During Narendra Modi's two-day visit to Singapore, which began on Wednesday after a trip to Brunei, an announcement was made.

The Singapore-India partnership has a promising future, according to Singapore Deputy Prime Minister Heng Swee Keat, who spoke at the Singapore-India Forum organized by the Singapore-India Partnership Foundation, Institute of South Asian Studies, and the Singapore Business Federation.

To enable capital, ideas, and talent to reach their full potential, Singapore, India, and the rest of Asia must enhance economic connectivity and integration, he stated.

Despite being the world's fastest-growing region, including India as the fastest-growing major economy, South Asia lags behind in GDP per capita.

On Wednesday, Modi and Singapore's Prime Minister Lawrence Wong toured AEM, a Singaporean semiconductor and electronics company, to signal their intention to strengthen cooperation in the chips sector.

Heng emphasized that increased collaboration can aid both countries in addressing common challenges, including climate change, aging populations, and public health.

Along with other government officials, Modi's entourage included Minister of External Affairs S. Jaishankar and National Security Advisor Ajit Doval.

India's sixth largest trading partner is Singapore, with a 3.2% share of India's overall trade. In financial year 2024, Singapore was India's largest import partner, with imports totaling $21.2 billion, while exports from India to Singapore amounted to $14.4 billion.

India receives the largest amount of foreign direct investments from Asia's financial hub, Singapore, which accounts for almost a quarter of total FDI inflows to the South Asian nation.

Lessons from Singapore's playbook

Before Modi's visit, political watchers advised CNBC that Singapore offers many lessons for India as it strives to become a global design and manufacturing center.

The Chinese have gained significant utilities from Singapore in the 1980s to 1990s, which is not lost on the Indians, according to Anit Mukherjee, a senior lecturer at King's College London, who shared this with CNBC.

In April, Apple announced plans to invest over $250 million to expand its Ang Mo Kio campus in Singapore, with CEO Tim Cook stating that the country is "truly a one-of-a-kind place." A month later, global biopharmaceutical firm announced plans to build a $1.5 billion manufacturing facility in the city.

However, the world's fifth-largest economy still has a long way go.

India should learn from Singapore's successful playbook when deploying billions of dollars to promote a domestic industry, as there are many nuts and bolts that need to be sorted out, according to Samir Kapadia, CEO of India Index and managing principal at Vogel Group.

In the past seven years, Singapore has established skill development centers in several Indian states, including New Delhi and Guwahati.

Kapadia stated that the semiconductor industry's incentivization is not the only objective, but also learning how to manage large-scale industrial planning and incentive programs.

— CNBC's Vinay Dwivedi contributed to this report.