[SINGAPORE] Companies based in Singapore are well-positioned to seize “huge opportunities” in India’s rapidly evolving economy, said two senior HSBC executives in a recent interview with The Business Times.
Key areas of growth include technology, healthcare, renewables and data centres, said Wong Kee Joo, chief executive officer of HSBC Singapore.
“From a renewables perspective, since September 2023, Singapore has invested close to US$780 million (in India),” he noted.
He also pointed to a 2024 commitment by Singapore firms to invest S$5 billion in the state of Tamil Nadu, including a S$500 million investment by CapitaLand Investment in business parks, logistics, warehouses and a data centre.
Singapore has been a leading source of foreign direct investment (FDI) into India over the past 25 years. Cumulative investments from the Republic total nearly US$175 billion, making up about 24 per cent of India’s total FDI inflows, based on data from the High Commission of India in Singapore.
India’s expanding consumer market is another promising area, said HSBC India CEO Hitendra Dave. “Every day in India, there is somebody switching on an air conditioner for the first time, somebody is flying for the first time, (and) somebody is eating cheese for the first time,” said Dave.
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India’s capital markets – “possibly one of the most active and dynamic capital markets right now” – are another major draw, he added.
In 2024, the country saw 338 initial public offerings (IPOs), the most globally for the second straight year. That marked a 44 per cent increase from 2023, with IPO proceeds almost tripling to US$21 billion. This has driven a “reverse flip” trend, where Indian firms incorporated overseas relocate their headquarters back to India in order to list locally, Dave said.
Indian regulations prohibit foreign-incorporated entities from listing on domestic exchanges.
“As long as the valuation differences are what they are, then any sensible person would want to do the ‘reverse flip’… and make (themselves) eligible to list on Indian stock exchanges,” said Dave. “It’s one of the most exciting things that is happening in India right now.”
Navigating complexities
One of HSBC’s recent priorities has been helping clients navigate the evolving trade landscape, including US tariffs imposed under the Trump administration.
“We’ve been through different tariff scenarios before,” said Wong. “Our focus has always been just (to) focus on a client and helping our clients understand – as these things shift – what are the challenges, but at the same time, what are the opportunities that can come along?”
While US tariffs have largely targeted physical goods, Wong noted that services form a “huge portion” of international trade. “I think that there’s also that other side of the equation that sometimes is not really looked into,” he added.
Both executives also pointed to HSBC’s broader advisory role – particularly in helping clients understand India-specific rules, such as foreign exchange controls.
“People who bank with us, bank with us because they need us in one country and (also) in another country,” said Dave. “If it’s a pure-play local market, there are alternatives available.”
For instance, foreign exchange restrictions in India can come as a surprise. “People in Singapore don’t understand foreign exchange controls, because there are no controls (here),” he added.
The lender – which employs more than 5,000 trade experts globally – also helps clients identify suitable joint venture partners, determine the best locations to set up operations, and locate the talent they need.
Said Dave: “The main thing is, we have to help people to soft-land, in the context of Singapore (and) India, India and Singapore.”
