India needs to undertake difficult structural reforms: Lee

India needs to undertake difficult structural reforms, cut the bureaucratic red tape, eliminate graft and strengthen infrastructure to move ahead, Singapore Prime Minister Lee Hsien Loong said today as he expressed confidence in the Indian economy.
"Ingredients for growth are already there, with India's large domestic market and a young and expanding workforce, plus Prime Minister Modi having a decisive mandate, and his determination to make fundamental changes to promote growth and investments," said Lee at the 90th annual dinner of the Singapore Indian Chamber of Commerce and Industry.
"Capital flows have rebounded, stock markets are at an all-time high, and consumer sentiments have improved," he said.

At the same time, difficult structural reforms are needed to maintain investor confidence and sustain growth in India, he noted.
He cited the need for India to cut the bureaucratic red tape, eliminate graft, strengthen infrastructure and connectivity.
"This would take time and a long way to go, but Singapore has every interest in India succeeding," he said.

"You will be building on good relations between Singapore and India," Lee said.
"We had facilitated India's entry into the ASEAN dialogue and the East Asia Summit. Leaders and officials on both sides have visited each other regularly and have good rapport," he said.

"Our people to people exchange are also growing - with Singapore being chosen by Indians in a recent international survey as the best city in the world to work and live in," he said.
Economically, India and Singapore ties are strong, said Lee.
"We have the India-Singapore Comprehensive Economic Cooperation Agreement (CECA) and ASEAN-India FTA," he stressed.
"With the new Indian Government led by Prime Minister Modi, we look forward to building on our good relations," said Lee.
The Singapore Prime Minister acknowledged that Modi has expressed strong support for a more comprehensive "strategic economic partnership" between the two countries".

Modi has suggested collaborations on smart cities, industrial townships.
"Together with the new partnerships that are already forged eg SIA-Tata airline, PSA's 4th container terminal at the Jawaharlal Nehru Port Terminal, the largest container port in India," he said.
Lee hoped Singapore companies can take advantage of the new markets and business opportunities.