- Singapore plans to re-enter Amaravati project with a broader partnership model
- An MoU signed with Singapore's GIC to invest Rs 45,000 crore in Andhra Pradesh
- Singapore demands guarantees from Indian government to avoid policy reversals
Six years after it was unceremoniously forced out of the Amaravati project, Singapore is preparing to re-enter Andhra Pradesh's capital dream - but in a new format, and only after securing assurances from the Government of India that there will be no policy reversals this time.
A formal announcement is expected soon in this regard.
In 2019, following YSR Congress's victory, the Singapore consortium tasked with building Amaravati's seed capital was abruptly shown the door as the state shifted focus to a three-capital model. The episode was seen as a humiliation for Singapore, and it froze investor confidence in Andhra Pradesh.
The return of N Chandrababu Naidu's Telugu Desam Party in 2024 has opened the door for a reset. Determined to restore Amaravati and investor trust, Naidu and his son, IT and Industries Minister Nara Lokesh, visited Singapore late last month to persuade its leadership.
The outreach was deliberate and personal. Naidu drew on his long relationship with the Lee Kuan Yew family, even meeting LKY's son along with Lokesh. Symbolically, Lokesh wrote an opinion piece in Business Standard on the day of their departure, describing LKY's influence on his political outlook - a signal that this partnership is seen as strategic, not transactional.
When they met Lee Hsien Loong (son of LKY), he actually said he read this article and liked it. He thanked Lokesh for acknowledging LKY's influence on his life, sources close to him told NDTV.
During the visit, the Andhra delegation met Singapore's Foreign Minister and President, framing the partnership as one central to Andhra Pradesh's growth story. After the meetings, in a significant public signal, the Singapore government itself posted on LinkedIn that it was re-entering Amaravati in a "different format."
The New Format
This time, Singapore will not be investing directly in Amaravati's seed capital project. Instead, the partnership will be broader and more diversified. There will be focus on Urban planning and technology assistance for Amaravati, impetus to Infrastructure and logistics investments across the state and Major financial commitment: An MoU has already been signed with Singapore's sovereign wealth fund, GIC, to invest Rs 45,000 crore in Andhra Pradesh.
The Delhi Rider
Having been burnt once, Singapore has insisted on a guarantee from the Government of India. Soon after the Singapore visit, Lokesh travelled to Delhi and met External Affairs Minister S Jaishankar to brief him on the discussions. With growing uncertainties in the West - including the possibility of new Trump-era tariffs - Delhi is keen on strengthening ties with East Asia. Sources say the Centre is supportive, and a formal announcement is expected shortly.
Political And Economic Takeaways
Securing Singapore's return would symbolically erase the scars of 2019 and re-establish Naidu as India's reformist Chief Minister with global clout. The demand for central guarantees shows how foreign investors now seek institutional continuity, not just state-level assurances. Also Amaravati's revival with Singapore, and the Rs 45,000 crore GIC investment, aligns with India's broader push toward East Asia amid Western trade uncertainties. Reviving Amaravati with marquee international backing allows Naidu to politically outflank Jagan Mohan Reddy's legacy of pushing Visakhapatnam as the capital.
Singapore's LinkedIn post marking its re-entry into Amaravati is more than a policy signal - it is a diplomatic and economic reset. For Andhra Pradesh, it promises renewed credibility; for Naidu, it is personal vindication; and for Delhi, it is part of a strategic eastward turn.
