The 2014 General Elections in India and its implications are perhaps uppermost in the minds of this audience and many others.  Indeed, the Bharatiya Janata Party’s momentous victory has led to a renaissance of global interest in India, its economic priorities and strategic orientation.  Within a few months of taking office, the new government, under Prime Minister Narendra Modi’s leadership has embarked on several initiatives to spur growth and development in India.  These include PM Modi’s recent “Make In India” campaign, which aims to transform India into a global manufacturing hub; Swachh Bharat, or Clean India; and Smart Cities initiatives to develop new cities and refurbishing old ones to create modern, liveable cities with 24/7 amenities and effective governance.

 

These initiatives are broad in scale and focused, quite rightly, on the new Indian government’s priorities to create opportunities for a billion people and raise their quality of life.  And there are several factors that can and do work in favour of this ambitious goal.  In manufacturing, for example, India has the advantage of a large and growing domestic market, fuelled by the rising Indian middle class and its disposable income; there is also a demographic dividend stemming from India’s relatively young population and workforce; and India enjoys relative price competitiveness against other manufacturing locations like China. 

 

However, India must also overcome certain rate limiting constraints, in order to realisze fully the value of this potential.  One is in the area of infrastructure be it – power, water, industrial parks – which is essential to industrial development.  Another is in the area of skills development – to train and develop the workforce to take on higher value added activities.  A third is logistics and connectivity to enhance domestic and international supply chains. 

 

While India’s new thrusts may be domestically focused, I believe they also impel an external orientation.  The quest to be a global manufacturing hub, for example, creates a strong impetus for India to look outwards towards greater regional economic integration.  The regions of North-East Asia and South-East Asia are compelling markets for Indian goods and services.  Many Indian companies are already pursuing actively such opportunities by leveraging on economic integration initiatives such as the bilateral Comprehensive Economic Cooperation Agreement with Singapore, and the recently concluded ASEAN India Free Trade Agreement.  (In 2013, India was one of ASEAN’s top ten trading partners, with a trade volume of about US$68billion, an increase of 24% from US$5billion in 2010.  India can further engage its economic footprint through the Regional Comprehensive Economic Partnership which seeks to bring together the markets of ASEAN, China, Japan, South Korea, Australia, New Zealand and India.  RCEP would bring about an order of magnitude change in opportunities for Indian companies, while attracting investments into India. In the context of Minister Chandrababu Naidu’s visit, Andra Pradesh, with its long seaboard will be very relevant to these FTAs.  
  
Against this backdrop, India-Singapore ties are poised to grow even further from the current strong base.  We have excellent ties at the highest levels of government, between Prime Minister Modi and PM Lee Hsien Loong and ESM Goh Chok Tong.  Our national and people to people ties are long and deep.  In fact, next year, Singapore and India celebrate the 50th anniversary of the establishment of diplomatic relations.  There has also been strong momentum in trade and investment flows between our countries.  In 2013, our bilateral trade was about S$25.5 billion dollars, and India is one of Singapore’s top 10 trading partners.  With the advent of CECA, Singapore has also become the largest source of investment flows into India.  Meanwhile, companies like Tata, Wipro, Infosys and Punj Lloyd are part of a growing cohort of Indian companies who have established regional headquarters in Singapore to connect with South-East Asian, North-East Asian and Pacific markets. 

 

While our engagement with India has been active at the centre in New Delhi, it has also gathered pace at the state level.  Individual states, and their links and coordination with the centre, are key to promoting Foreign Direct Investment and growth.  Recognising this, Prime Minister Narendra Modi (who was the former Chief Minister of Gujarat) has emphasized the importance of a ‘symbiotic relationship between the state and Centre’ for India to move forward in its overall development.

 

Of late Singapore has had the privilege of hosting visits from the Chief Ministers from various states in India - of West Bengal, Telangana, Rajasthan and, this week, Andhra Pradesh.  As we well appreciate, each Indian state has its own unique strengths, characteristics and possibilities.  In turn, Singapore companies have sought to channel their capital and limited management bandwidth to states that offer the best alignment in terms of opportunities, capabilities, partners, business-friendly policies, good governance and effective leadership.

 

Today, we have the pleasure of welcoming Chief Minister Chandrababu Naidu to Singapore and this conference.  The Chief Minister is an old friend of Singapore, and we have had good relations with the old Andhra Pradesh, especially the capital Hyderabad.  Many would recall that the city was transformed into a modern capital and an IT hub under Chief Minister Naidu’s visionary leadership.  Not surprisingly, many Singapore companies responded - for example, Ascendas established two IT parks (the V and Cyberpearl), Surbana was involved in masterplanning projects in the city, while our construction companies have also been active in the state.

 

Today, Mr Naidu is here as the Chief Minister of the newly created state of Andhra Pradesh.  I have had the pleasure of engaging him in discussions over the past couple of days.  Following the bifurcation which led to the formation of the new Andhra Pradesh, he is here, as it were, with a clean slate, exciting plans for his new state and capital city, and his trademark enthusiasm and energy.  He has also met with Singapore government agencies and some of our leading businesses in different sectors.  It is clear to me and to all that have engaged with him and his delegation that the Chief Minister and his team have put much thought into where and how they wish to work with Singapore to help turn their vision into reality in the shortest possible time.  Upon the Chief Minister’s request and invitation, we have already nominated Mr Khoo Teng Chye, Executive Director of the Centre for Liveable Cities, to be part of the state’s Capital City Advisory Committee.  Chief Minister, we look forward to developing a long and close partnership between Andhra Pradesh and Singapore, under your leadership.  

 

The hope and prospects for the new Andhra Pradesh are emblematic of the recent and broader developments in India.  There is renewed optimism among the people, and enthusiasm and vigour within the business community.  It is too early to issue a report card, but the new government has set the tone and direction.  Success will depend on how well the plans are executed.   

 

And that is where this 9th ISAS International Conference, and other similar fora, can play a significant role.  It is an important opportunity for Singaporean and international businesses to hear directly from the political leaders, gain a nuanced understanding of their plans and priorities, and engage them in dialogue and to give feedback on specific opportunities and initiatives.  It is also an opportunity to hear from expert speakers on specific opportunities/sectors, network, and form partnerships that can spur deeper economic and business collaboration. 

 

On that note, I want to  congratulate ISAS on yet another successful International Conference this year, and wish you all a productive day ahead. 

 

Thank you.