Tata Capital, the Indian fund management firm, has signed a memorandum of understanding with the Economic Development Board of Singapore in a bid to encourage more partnerships between investors from both countries.

Tata Capital has an existing headquarters in the city-state, which has been operating since 2008. Under the terms of the deal, TCPL will function as liaison between the EDB and companies from India and other countries looking to invest in the Asian economic hub. Besides its focus on industries such as manufacturing, information technology and healthcare, Tata is said to be particularly interested in setting up a private investment banking business in Singapore within the next two years.

"By working with EDB of Singapore, we will be in the best position to help such companies leverage Singapore's regional and international influence and outreach and in return, contribute to Singapore's long term prosperity," said Praveen Kadle, managing director and chief executive of Tata Capital. 

Singapore has one of the largest Indian foreign business communities in the world with some 5,000 Indian companies based there. According to International Enterprise Singapore, formerly known as the Singapore Trade Development Board, India is one of the 10 largest trading partners of the city-state. The two countries forged a Comprehensive Economic Cooperation Agreement in 2005.