Various Memorandum of Understanding (MoU) between India-Singapore | Current Affairs | Vision IAS
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    Various Memorandum of Understanding (MoU) between India-Singapore

    Posted 06 Sep 2024

    2 min read

    Outcomes of the Recent Visit of the Indian PM to Singapore

    • 4 MoUs in the fields of digital technologies, semiconductors, health cooperation and skill development.
    • Elevating bilateral relations to a higher level of a Comprehensive Strategic Partnership. 
    • MoU on Semiconductor envisages cooperation in semiconductor cluster development, talent cultivation, and advanced manufacturing, particularly developing resilient supply chains.
      • Singapore’s semiconductor industry accounts for 10% of all chips and 20% of semiconductor manufacturing equipment produced globally. 

    Significance of International Cooperation in Semiconductor

    • Foundation of modern technological landscape: like AI, Quantum computing, etc. calling for global collaboration to foster innovation and research. 
    • Criticality of Indo-Pacific Region: Most players (USA, Taiwan, South Korea, etc. ) are situated in this region, critical for India. 
    • Complex and Specialized Supply Chain: Different countries hold dominance in segments of semiconductor manufacturing like the USA for chip design, Taiwan for manufacturing, etc.
    • Gaining Leverage over China: Currently, China lags behind other major players in the domain, diverse collaboration would reduce dependence on China creating a resilient supply chain. 
    • Boost Economic Growth: By leading in semiconductor manufacturing.
      • Indian Semiconductor Mission with an outlay of USD 363 million can attract huge investments. 

    India- Singapore Relations

    • Bilateral Relations: Elevated to Strategic Partnership in 2015. 
    • Economic: India’s 6th largest trade partner (2023-24) with a share of 3.2 % of India’s overall trade. 
      • Conclusion of the Comprehensive Economic Cooperation Agreement in 2005 saw significant expansion in trade. 
    • FDI: Largest source of FDI into India during 2023-24 (US$ 11.774 billion).
    • Tags :
    • Semiconductor
    • Indo-Pacific Region
    • India-Singapore
    • Resilient Semiconductor Supply Chain
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