Prime Minister Narendra Modi and Singapore’s Prime Minister Lawrence Wong virtually inaugurated the second phase of the Bharat Mumbai Container Terminal (BMCT) at Jawaharlal Nehru Port on Thursday. This inauguration was more than just a boost to India’s maritime infrastructure. It also marked a significant moment in India–Singapore relations, highlighting Singapore’s role as India’s largest trade and investment partner in the ASEAN region.

The event took place during Wong’s three-day visit to India, which coincides with the 60th anniversary of diplomatic relations between the two nations. According to the Ministry of External Affairs (MEA), both leaders used this milestone to showcase how their partnership now spans ports, shipping, digital technologies, startups, and green energy.

A Strategic Boost to India’s Maritime Sector

The PSA Mumbai Terminal, built with over $1 billion investment from Singapore’s PSA International, is one of India’s most ambitious port collaborations. The newly launched Phase-II expansion increases the terminal’s total handling capacity to 4.8 million TEUs, making it India’s first Dedicated Freight Corridor-compliant container terminal.

Jawaharlal Nehru Port Authority (JNPA), which already manages 54 percent of India’s containerized cargo, now has greater capacity to handle trade. With a deep draft of 15 meters, the port can accommodate next-generation mega vessels carrying up to 18,000 TEUs.

The terminal is also India’s first fully renewable energy-powered container terminal, offering connectivity to 63 inland container depots through both rail and road networks.

Prime Minister Modi praised the terminal’s role in boosting both efficiency and sustainability. “Earlier today, we inaugurated Bharat Mumbai Container Terminal Phase-II, developed by Singapore’s PSA International. This milestone will further enhance our container handling capacity,” he said during the event.

Singapore: India’s Most Trusted ASEAN Partner

Singapore is not just a key investor but also India’s largest trade partner in the ASEAN region, accounting for nearly 28 percent of India–ASEAN trade in 2024–25. Bilateral trade reached $34.3 billion in 2024–25, reflecting strong ties despite a slight dip compared to the previous year.

On the investment front, Singapore remains India’s top source of Foreign Direct Investment (FDI). From April 2000 to March 2025, it invested nearly $175 billion, which is 24 percent of India’s total FDI inflows. Notably, $60 billion of this came after the COVID-19 pandemic, highlighting Singapore’s growing role in India’s recovery and expansion.

The MEA emphasized this in a statement:
“Singapore is an important partner for India, including in our ‘Act East’ Policy. The visit reaffirms the continued commitment of the two countries to further strengthen their comprehensive strategic partnership.”

Singapore’s strong financial ecosystem has also attracted 9,000 Indian companies, making it a hub for Indian firms raising global capital through external commercial borrowings and portfolio investments.

Five Agreements to Expand Cooperation

During Wong’s visit, India and Singapore signed five agreements covering diverse sectors:

1. Green and Digital Shipping Corridors – to promote sustainable, efficient maritime practices and link Indian ports with Singapore’s expertise.

2. Space Sector Collaboration – enabling joint research, satellite data sharing, and space science projects.

3. Civil Aviation Expansion – focusing on connectivity, safety, and digital services in aviation.

4. Advanced Manufacturing and Nuclear Energy – promoting innovation, skilling, and energy cooperation.

5. Digital Innovation and Fintech Frameworks – building on the success of UPI–PayNow cross-border payments.

Prime Minister Modi highlighted these pacts as a “roadmap for the future”, emphasizing cooperation in artificial intelligence, quantum technologies, and green hydrogen.

Trade Agreements and CECA Review

The Comprehensive Economic Cooperation Agreement (CECA), signed in 2005, has been central to India–Singapore relations, covering trade, services, intellectual property, and investment protection. Both countries announced a time-bound review of CECA and the ASEAN-India Free Trade Agreement in Goods (AIFTA) to reflect current economic realities.

The MEA said the review would reduce tariffs, update recognition agreements, and expand market access, especially in financial and digital services. For India, Singapore serves as a gateway to the broader ASEAN market, making this review crucial for regional trade expansion.

Driving Innovation and Startups

Both leaders placed strong emphasis on startups, technology, and digital innovation as future growth pillars.

The success of UPI–PayNow, which now links 13 Indian banks to Singapore’s payment network, was highlighted as a model of digital cooperation. Plans are underway to host the next India–Singapore Hackathon, connecting young innovators in fields such as AI, quantum computing, and digital security.

Singapore is also supporting India’s skilling initiatives. A National Centre of Excellence for Skilling is being set up in Chennai with Singapore’s help, focusing on advanced manufacturing and semiconductor industries.

Green Energy and Future Connectivity

Both nations are exploring a bold plan to export renewable energy from India to Singapore via an underwater cable, which could also carry data connectivity.

While the project faces technical challenges due to the Andaman Trench, both sides are committed to pursuing it. Other green initiatives under discussion include exports of green hydrogen and green ammonia, aligning with their shared climate goals.

Strategic Role in the Indo-Pacific

India and Singapore’s relationship extends beyond economics. Both nations share concerns about regional stability, terrorism, and open sea lanes in the Indo-Pacific. Modi thanked Wong for Singapore’s support after the recent Pahalgam terror attack, underscoring their growing security cooperation.

Singapore’s maritime expertise complements India’s port modernization efforts, while India’s role as a manufacturing hub helps Singapore diversify its supply chains. Together, they act as stabilizers in the broader ASEAN–Indo-Pacific framework.

Partnership with Purpose

Prime Minister Modi concluded by calling the relationship “a partnership with purpose,” saying it is “rooted in shared values, guided by mutual interests, and driven by a common vision for peace, progress, and prosperity.”

From modern port terminals to digital innovation and renewable energy, this partnership reflects deep trust and forward-looking ambitions. With Singapore’s role firmly anchored, it remains a vital partner in India’s economic and strategic future.