Singapore cos should target Indian infra, manufacturing sectors: Report

SINGAPORE: India's infrastructure and manufacturing sectors will be the most attractive investment opportunities for Singapore companies, The Straits Times reported today.

It cited Sandeep Uppal, the Managing Director and Head of Commercial Banking at HSBC India, highlighting the Indian government's plans to set up manufacturing and investment zones to encourage investment in metals, textiles, chemicals, food and agriculture among others.

He also pointed out the transition from government control to public-private partnerships in infrastructure in India, adding that the private sector would play a key role in the developments of power, railways, ports and urban infrastructure.

These infrastructure developments would create demand for construction equipment and machinery, Uppal told a seminar organised by the International Enterprise Singapore, a state-owned trade promotion agency.

By 2022, the Indian government hopes to lift the manufacturing sector's contribution to the economy to 25 per cent from 15 per cent at present, said Uppal.

Stressing the importance of focusing on the two sectors, Uppal said the service sector was no longer the cornerstone of International businesses operating in India.

Singapore is one of the biggest foreign investors in India, with a total of USD 11.3 billion invested between April and September last year, according to the Singapore daily.