India and Singapore pledged on September 4 to deepen cooperation on artificial intelligence and semiconductors, signing new industry pacts as New Delhi works to expand trade ties with key partners and blunt the impact of 50% U.S. tariffs.

“Singapore is a strong pillar of our Act East Policy,” Indian Prime Minister Narendra Modi said during a joint statement in New Delhi alongside Singaporean counterpart Lawrence Wong. “Tech and innovation are pillars of our relationship.”

The two nations signed agreements spanning sectors from shipping to civil aviation. Wong said they also plan to collaborate on state-level skill centers to meet industry demand in areas such as aviation and chips. Cooperation in semiconductors will extend beyond training to include research and development, supply chains and logistics, he said.

“These efforts will generate new growth opportunities for both our countries,” Wong said, before the two leaders shared a hug on stage.

Singapore could play a key role in Modi’s push to turn India into a global tech hub. The city-state already accounts for about 10% of global chip production and 20% of semiconductor equipment output. As India prepares to roll out its first made-in-India semiconductors by year-end, partnerships with established players like Singapore are expected to be critical. Bilateral trade stood at $34.26 billion in 2024-25, according to official Indian data.

The wealthy island nation has also been the source of almost a quarter of all foreign investment in Indian equity since 2000, with notable dealings in manufacturing, finance and real estate. Bilateral ties are helped by Singapore’s ethnic Indian population.

Wong’s visit follows that of German Foreign Minister Johann Wadephul, who expressed optimism that a free-trade agreement between the European Union and India could be concluded as early as this autumn. Germany and other EU members are increasingly looking to deepen economic engagement with New Delhi, in response to growing concern that President Donald Trump’s sweeping trade tariffs could nudge India closer to China and Russia.

Washington has doubled levies on India’s imports to 50% as punishment for its Russian oil imports. The move stunned officials in New Delhi, and added urgency to efforts to secure trade agreements with other partners.