In the last few months, the republic has been focusing on the world’s second most populous nation, which estimates that its population will hit 1.46 billion by 2035, overtaking China.

Besides, India’s economy has been rising rapidly in proportion to its expanding middle class.

Last month, Goh Chok Tong visited India to cement ties, just a month before he stepped down as Prime Minister.

This was part of Singapore’s diplomatic offensive to gain more – and closer – friends and trading partners to counter a dangerous, terror-threatened world and a changed global economy.

The strengthened ties with India are not confined to trade and investment but, unlike China, also cover defence and military co-operation.

In the past two months, new business activities have included:

ONE of India’s fusion high-fashion retailers, RSH, set up an outlet in Orchard Road, the first of its kind in Asia.

THE Ahmedabad-based Meghmani Organics became the first Indian company to be listed in the Singapore Stock Exchange. It has begun trading, recording a history of sorts.

SINGAPORE Airlines (SIA) announced the launch of direct flights between Amritsar and Singapore three times a week from Oct 1, raising to 10 the number of destinations with 49 weekly flights.

SOME of Bollywood’s leading stars staged a dazzling show for a crowd of 6000 at the Singapore Indoor Stadium. The city was also used for a location shoot. India has been overshadowed by China in attracting foreign investment, both in volume and profile.

But with China becoming overheated, overcrowded and foreigners finding it harder to make a profit, Singaporean businessmen are casting their eyes elsewhere.

This includes the government – with US$100bil (RM380bil) to invest – and government-linked companies, which are among the most active business predators in the region.

These are people who have, since Singapore’s inception, been anxious not to put too many eggs in one basket.

Investment in India has, however not reached the level Singapore has with other neighbours.

It has been actively buying up large stakes in banks, telcos, hotels, property and ports in Hong Kong, China, Australia, Japan, Indonesia, Thailand and Malaysia.

By comparison, India has been a laggard but not for lack of enthusiasm. The ideological and myopic policies of successive Indian governments have kept many foreigners out.

Despite this, the city-state has become India’s third largest foreign investor, putting in US$1.27bil (RM4.9bil), but Goh said this could double in the coming months. Bilateral trade has also powered ahead to S$7bil (RM15bil) from S$4.2bil (RM9.2bil) in 2002.

Last month, the two countries decided to close ranks on a host of security, strategic and economic issues.

It also paved the way for Singapore to train its Air Force and Army units in India. Last year, they signed a defence co-operation agreement, setting up a regular bilateral dialogue on security matters.

In March, the Indian and Singapore navies conducted a joint 12-day anti-submarine exercise in Kochi, India.

Most young Singaporeans find democratic India, a fellow Commonwealth partner, more reliable and trustworthy than communist China.

Being targeted for a bombing attack and the global war on terrorism are not the only reasons for widening Singapore’s window to the world.

The republic also needs to expand its economic activities and find new partners. India is a natural choice.

Since early this year, Singapore’s top leaders had visited a total of 26 countries including the United States, China, India, Japan and several in the Middle East, South America and Africa.

Making the foreign forays were Goh, Lee Kuan Yew and current Prime Minister Lee Hsien Loong as well as other ministers.

Some 7% of Singapore’s 3.5 million citizens are ethnic Indians. They provide a small, but relatively rich market for Indian products.

Little India, a section in the city where ethnic Indians congregate, is expanding. Many Indian shops and restaurants are situated there.

This was why Bollywood chose Singapore to launch its international plan to promote itself.

The idea was to choose a place with a large South Asian audience, fly in a colourful bunch of film stars and dance troupes from India, stage a glitzy film awards extravaganza, then party, party and party.

One journalist wrote: “Last year the party was in Johannesburg. The year before, it was Malaysia's Genting Highlands resort. This year the roulette ball stopped at Singapore.”

A growing number of Singaporean Indians are already setting up businesses in Indian cities.

India is unlikely to replace China until its government frees up on its restrictive policies and clears its bureaucratic landmine.

China, however, is not without dangers. A big country with big opportunities has also big problems. Even leaving aside internal ones, a major overhanging danger is the Taiwan issue.

For years, Chinese-educated businessmen here had believed that Singapore, being Chinese-dominated, would have a special advantage doing business in China.

It took some time to dispel this notion. With this experience, Singapore’s ethnic Indians appear not to believe it in India.

“Being Indian helps only to the extent that I can talk to my workers, nothing more,” said a Singaporean textile factory owner in Chennai, India.

But one thing is certain. With three economic heavyweights in Hsien Loong’s new Cabinet, Singapore’s investment abroad is set to rise further.

o Seah Chiang Nee is a veteran journalist and editor of the information website littlespeck.com (e-mail: cnseah2000@ littlespeck.com )

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