India’s rapid urbanisation and industrialisation have positioned it as a rising global economic powerhouse. However, challenges such as bureaucratic inefficiencies, infrastructural deficits, and inconsistent regulatory frameworks continue to constrain growth.One strategic solution is the development of Singaporean-style charter cities — a form of special charter zones (SCZs) — in India, offering world-class infrastructure, governance, and economic incentives.Indian industrialist Tarun Das recently mooted the development of townships to Singapore’s enterprise sector. But why not go further and establish SCZs in partnership with Singapore’s sovereign funds to catalyse economic growth in India? This could also serve to strengthen the economic footprint and outreach of India’s spheres of influence. A partnership between Temasek Holdings, Singapore’s sovereign investment arm, and India’s National Investment and Infrastructure Fund (NIIF) could finance and develop these charter cities, ensuring long-term investment stability, high productivity, and global competitiveness.The strategic establishment of SCZs cities — ranging from 2 sq km (the size of Monaco) to intermediate sizes of ranging from 61 sq km (the size of San Marino) and 300 sq km (the size of Malta), up to 1,000 sq km (similar to Hong Kong) — in select states such as Kashmir, Ladakh, Kerala, Goa, and the Northeast would unlock economic diversification, drive regional transformation, and foster international trade.By leveraging Singapore’s expertise in urban governance, these cities could serve as economic accelerators, replicating the spillover effects seen in Shenzhen (from Hong Kong) — which has eclipsed Hong Kong in certain aspects — and Johor Bahru (from Singapore). They would not only attract global investments and high-value industries but also integrate surrounding regions into India’s growth trajectory.The Strategic Role of Singapore & NIIF in SCZ DevelopmentTemasek Holdings, Singapore’s state investment fund, can leverage its expertise to drive the growth of charter cities in several key areas:Investments in Core Urban Infrastructure: By co-developing urban transport, utilities, and digital infrastructure through Singapore-backed portfolio companies, Temasek can help establish a solid foundation for the charter cities.Technology-Driven Urban Planning: The use of AI-driven governance models, IoT-enabled urban management, and digital public services can enable seamless urban operations and create a more efficient and sustainable living environment.Venture Capital & Innovation Hubs: By facilitating startup incubation and high-tech ecosystem development in fintech, biotech, and deep tech industries, Temasek can foster innovation and entrepreneurship in the charter cities, potentially leading to the creation of new industries and job opportunities.Overall, Temasek’s involvement can help charter cities become thriving, sustainable, and innovative urban centers, with a high quality of life for their residents. And it can build upon this through the NIIF (National Investment & Infrastructure Fund).This is convergent with its investment commitment of US$10 billion to India from 2023 to 2025, deploying US$3 billion a year and positions it to be a long-term investor and beneficiary of India’s growth momentum to 2035, notwithstanding the current slowdown. The partnership between Temasek and NIIF is a significant one, with Temasek being one of the international partners and shareholders of NIIF, which is 49% owned by the Indian government. The remaining 51% of NIIF is owned by a group of sovereign wealth and pension funds, including Temasek, as well as other investors such as Canada’s Ontario Teachers’ Pension Plan (OTPP), AustralianSuper and UAE’s Abu Dhabi Investment Authority (ADIA).This partnership enables potential co-investment opportunities in various sectors in India, leveraging the strengths and expertise of both Temasek and NIIF. The collaboration can facilitate investments in key areas such as infrastructure, data centers, renewable energy, and more, driving economic growth and development in India.For example:Infrastructure: NIIF operates across different infrastructure sectors, which aligns with Temasek’s interests in India.
Data Centres: NIIF is setting up India’s largest single-location data center in Navi Mumbai, while Temasek’s subsidiary ST Telemedia is expanding its data center business in India.
Renewable Energy: Temasek’s subsidiary Sembcorp Industries is looking at more renewable energy investment opportunities in India, which could potentially align with NIIF’s climate business operating in the energy transition space.NIIF can co-finance and de-risk large-scale urban projects, ensuring long-term financial sustainability. A joint investment framework between Temasek and NIIF focused on SCZs would:De-risk regulatory challenges by providing stable governance and investment predictability.
Mobilize global capital from institutional investors seeking exposure to India’s economic growth.
Accelerate infrastructure rollouts, enhancing regional connectivity and logistics capabilities.By combining Singapore’s governance expertise with NIIF’s infrastructure financing capabilities, these charter cities could become magnets for global capital and high-tech industries, ensuring high efficiency and rapid development.Key Economic Benefits of Singaporean Charter Cities in IndiaThe development of charter cities in India can focus on four key areas:Enhancing India’s Manufacturing & Export Competitiveness: This can be achieved by creating industrial hubs with world-class logistics, attracting foreign direct investment, and promoting export-oriented growth through improved port access, smart warehousing, and supply chain optimization.
Developing Financial Services & Fintech Innovation: The goal is to establish international financial hubs, similar to Singapore’s financial district, and promote digital banking, blockchain integration, and venture capital and asset management ecosystems.
Advancing Smart Cities & the Digital Economy: This involves implementing AI-driven urban governance, integrated digital infrastructure, and sustainable urban planning, including the use of renewable energy, water recycling, and carbon-neutral architecture.
Creating World-Class Talent Clusters: The focus is on developing industry-aligned vocational training, global research and innovation hubs, and startup and digital economy integration, with the aim of attracting entrepreneurs and high-skilled workers to these charter cities.By focusing on these areas, the charter cities can become hubs for economic growth, innovation, and talent, driving India’s development and competitiveness in the global economy.Regional Transformation: SCZs as Economic AnchorsThe development of charter cities in various regions of India can have a significant impact on regional economic growth and diversification. In Kashmir and Ladakh, charter cities can focus on high-value tourism, renewable energy, and cross-border trade.This can include positioning the region as a premium winter tourism destination, similar to Switzerland or Dubai, with a focus on luxury tourism and hospitality. Additionally, the region can harness solar and hydropower to develop a renewable energy export economy, becoming a green energy hub. Furthermore, charter cities in Kashmir and Ladakh can serve as a transit hub for South Asian and Central Asian trade flows, facilitating cross-border trade and logistics.In Kerala, charter cities can focus on health, wellness, and blue economy innovation. This can involve developing world-class wellness centers, hospitals, and research institutes, establishing Kerala as a medical tourism and Ayurveda hub.The region can also establish a maritime charter city focused on ocean technology, shipbuilding, and fisheries, promoting sustainable fisheries and marine tech. Moreover, Kerala’s educated workforce can be leveraged to create a leading AI, biotech, and fintech hub, driving innovation and entrepreneurship in the tech and startup ecosystem.In Goa, charter cities can focus on financial services and digital economy, positioning the region as India’s financial gateway, similar to Singapore’s financial district. This can include offshore banking and wealth management, as well as developing a remote work and digital entrepreneurship hub, attracting digital nomads and startups.Additionally, Goa can expand its eco-tourism, luxury hospitality, and cultural industries, promoting sustainable tourism and cultural economy. By doing so, Goa can become a hub for financial services, digital economy, and creative industries, driving economic growth and diversification.In India’s Northeast, charter cities can focus on cross-border trade and manufacturing, serving as a regional logistics and export hub for India-Southeast Asia trade. The region can promote organic farming, climate-resilient agriculture, and food processing, establishing itself as a hub for agri-tech and sustainable industries.Furthermore, charter cities in the Northeast can develop digital infrastructure, logistics centres, and express transport networks, driving smart infrastructure and e-commerce growth. By integrating with ASEAN and global supply chains, the region can become a key player in regional trade and commerce, driving economic growth and diversification in the Northeast.Strategic Benefits & Economic Spillover EffectsBy positioning charter cities as high-productivity urban enclaves, India can replicate the success of Hong Kong’s evolving economic relationships with Shenzhen and Singapore’s economic spillover into Johor. This can lead to several benefits, including enhanced regional connectivity, employment growth, and economic inclusion. Improved transport, digital, and logistics infrastructure in adjacent areas can facilitate the growth of charter cities, while generating millions of skilled jobs and entrepreneurship opportunities can help to reduce unemployment and promote economic development.Moreover, upgraded governance and business environment can set a model for streamlined regulations, business-friendly policies, and efficient service delivery, making it easier for businesses to operate and thrive in these cities.However, there are also challenges that need to be addressed, such as policy coordination and federal-state alignment, which requires establishing a clear governance framework that balances national, state, and local interests. Implementing special legislative provisions to ensure regulatory stability is also crucial to attract investments and promote economic growth.Additionally, political and social integration is essential to ensure that local populations are integrated into the workforce and that there are no perceptions of foreign control. This can be achieved by promoting joint Indian-Singaporean investment frameworks and ensuring that economic policies are inclusive and beneficial to all stakeholders.Sustainability and environmental considerations are also vital, and implementing green building codes, carbon neutrality goals, and sustainable infrastructure planning can help to balance economic growth with ecological preservation.Overall, the development of charter cities in India requires a careful consideration of these challenges and the implementation of effective risk mitigation strategies. By doing so, India can create high-productivity urban enclaves that drive economic growth, promote employment and entrepreneurship, and improve the overall quality of life for its citizens.ConclusionThe establishment of Singaporean-style charter cities in India presents a transformative opportunity to address the nation’s challenges and unlock its economic potential. By leveraging Singapore’s expertise in urban governance, infrastructure development, and innovation, these cities can drive economic diversification, foster high-value industries, and integrate India into global supply chains.The strategic partnership between Temasek Holdings and NIIF provides a robust foundation for financing and developing these cities. With a focus on advanced manufacturing, fintech innovation, smart urban planning, and talent development, these cities can position India as a leader in the global digital and green economies.However, success depends on careful policy coordination, federal-state alignment, and a commitment to sustainability and social integration. By addressing these challenges, India can ensure that charter cities empower local communities, preserve ecological balance, and drive inclusive growth.As India strives to become a $10 trillion economy by 2035, these cities can serve as the cornerstone of its growth story, embodying the nation’s aspirations for innovation, sustainability, and global leadership.