'Indian Co using S'pore as springboard to AP'

Singapore, Oct 30: About 2,000 Indian companies based here are using the island-state as a springboard to Asia Pacific, country's Minister of State for Trade and Industry S Iswaran said today.

Many of these companies have set up regional headquarters here as bilateral trade between Singapore and India expanded to a hefty 16.6 billion Singapore dollars last year, a 40 per cent increase over 2004, he said at the beginning of Global Indian Business Summit here.

In return, Singapore has become the third largest foreign investor in India last year, investing over 321 million dollars, Mr Iswaran added.

He highlighted the strong traditional and cultural link between the two nations, pointing out that the Comprehensive Economic Co-operation Agreement (CECA), signed last year, laid the foundation for stronger economic partnership by enhancing bilateral flows of trade, investments, ideas and people.

''We are now beginning to see the fruits of the CECA,'' he said underlining the phenomenal growth in two-way trade.

He said eight per cent of the resident population in Singapore is of Indian origin, while international Indian companies, including Tata Steel, have become major regional players, especially through acquisition of Singapore-based NatSteel Asia to expand into the Asia-Pacific region.

''As businesses become increasingly globalised, we will see more of such cross-border transactions between Indian and Singaporean companies - and this is a trend to be welcomed,'' said Mr Isawaran.

UNI