Six years after its exit from the ambitious Amaravati capital city project, Singapore is preparing to return—this time in a redefined format and with firm assurances from the Government of India that history will not repeat itself. A formal announcement of the renewed partnership is expected soon.

From Exit to Reset

Back in 2019, the Singapore consortium tasked with developing Amaravati’s seed capital was abruptly removed following the YSR Congress Party’s victory. The then-government shifted focus to a three-capital model, leaving Singapore sidelined and its confidence in Andhra Pradesh badly shaken. The move was widely seen as a diplomatic setback, freezing investor sentiment in the state. The return of N. Chandrababu Naidu and the Telugu Desam Party in 2024 has now opened the door for a reset. Determined to restore Amaravati’s lost momentum and rebuild trust, Naidu and his son, IT and Industries Minister Nara Lokesh, made a high-profile visit to Singapore last month to revive the partnership.

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A Personal Outreach

The outreach went beyond boardroom discussions. Naidu leveraged his longstanding relationship with the Lee Kuan Yew family, meeting Lee Hsien Loong, the former Singapore Prime Minister and son of LKY, alongside Lokesh. In a symbolic move, Lokesh published an opinion piece in Business Standard on the day of their departure, acknowledging Lee Kuan Yew’s influence on his political outlook. Sources say Lee Hsien Loong himself appreciated the gesture, telling Lokesh he had read and liked the article. During the visit, the Andhra delegation also met Singapore’s Foreign Minister and President. The meetings positioned the partnership not just as an investment but as a strategic element of Andhra Pradesh’s growth story.

The New Model of Partnership

Unlike in 2019, Singapore will not be directly investing in Amaravati’s seed capital. Instead, the collaboration will be broader and more diversified. The renewed focus will be on urban planning expertise, technology-driven solutions, and infrastructure development across Andhra Pradesh.

Most notably, Singapore’s sovereign wealth fund, GIC, has already signed an MoU to invest ₹45,000 crore in the state—marking a major financial commitment that extends beyond Amaravati into logistics and industrial development.

Delhi’s Assurances: A Critical Factor

One of Singapore’s key conditions for its return was a guarantee from the central government. Having been caught in a policy reversal once, Singapore sought institutional assurance before committing again. Following the Singapore trip, Nara Lokesh met with External Affairs Minister S. Jaishankar in Delhi to brief him on the talks.

With shifting global trade dynamics and uncertainties in the West—particularly the possibility of new tariffs under a potential Trump presidency—India is looking to deepen its engagement with East Asia. Sources indicate that the Centre is supportive of Singapore’s return, clearing the way for a formal announcement.

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Political and Economic Implications

For Naidu, bringing Singapore back represents more than an economic partnership—it is a political vindication. It erases the scars of 2019, restores his reformist image, and provides international backing to his vision for Amaravati. For Andhra Pradesh, it signals renewed credibility with global investors. And for New Delhi, it aligns with India’s strategic eastward push at a time of uncertain ties with the West.