India and Singapore agree to cooperate on chips as countries seek to strengthen partnership

SINGAPORE — India and Singapore on Thursday signed memorandums of understanding for cooperation on a number of key areas including semiconductors, digital technologies, skill development and health care.

The announcement comes during Indian Prime Minister Narendra Modi's two-day visit to the Lion City, which began Wednesday following a trip to Brunei.

"Singapore and India have built strong foundations for an enduring partnership. The next phase of the Singapore-India partnership is very promising," Singapore Deputy Prime Minister Heng Swee Keat said at the Singapore-India Forum organized by the Singapore-India Partnership Foundation, Institute of South Asian Studies and the Singapore Business Federation.

"Singapore, India and the rest of Asia must continue to strengthen on economic connectivity and integration, to allow for capital, ideas and talent to find their optimal uses," he said.

Although South Asia continues to be the world's fastest-growing region — and India the world's fastest-growing major economy — the region is still playing catch up in terms of GDP per capita.

India's GDP per capita currently stands at $2,730, significantly lower than that of the U.S. ($85,370), China ($13,140), Germany ($54,290) and Japan ($33,140), data from the International Monetary Fund showed. Those four economies are also the same ones the South Asian nation is currently trailing behind in terms of overall GDP.

"Singapore is not just a partner, it is an inspiration for every developing country. We want to create a bunch of Singapores in India," Modi said in a meeting with Wong.

On Wednesday, Modi and Singapore's Prime Minister Lawrence Wong visited Singaporean semiconductor and electronics company AEM, signaling their intent to increase