India, Malaysia to discuss trade pact review during Modi’s visit

India, Malaysia to discuss trade pact review during Modi’s visit

The Malaysia-India trade pact, which covers trade in goods and services as well as investments, was signed in February 2011 and came into force on July 1 that year.

Narendra Modi
India’s prime minister Narendra Modi is expected to hold wide-ranging talks with Prime Minister Anwar Ibrahim. (EPA Images pic)
NEW DELHI:
India and Malaysia are expected to discuss a review of their bilateral free trade agreement during prime minister Narendra Modi’s visit this weekend.

The move is part of efforts to enhance bilateral trade “in a balanced and sustainable manner”, according to Periasamy Kumaran, a secretary in India’s external affairs ministry.

India and Malaysia are cooperating under Asean for an early conclusion of the ongoing review of the Asean-India Trade in Goods Agreement (AITIGA), and are also discussing a joint review of the Malaysia-India Comprehensive Economic Cooperation Agreement (MICECA), he told reporters during a media briefing in New Delhi.

The Malaysia-India trade pact, which covers trade in goods and services as well as investments, was signed in February 2011 and came into force on July 1 that year.

Modi and Prime Minister Anwar Ibrahim are expected to hold wide-ranging talks in key areas such as trade, investments, defence, semiconductors, digital technologies, renewable energy, education, healthcare, and people-to-people exchanges.

The value of annual bilateral trade is around US$20 billion and there has been a significant rise in two-way travel.

Malaysia received more than 1.4 million Indian visitors, while 300,000 Malaysians travelled to India in 2025.

Kumaran said Malaysia is the largest source of inbound tourists for India from Southeast Asia.

“The visit of Modi to Malaysia would serve to further strengthen bilateral cooperation as well as set the path for future engagements,” he said.

India is also keen to strengthen its defence and security ties with Malaysia. Kumaran highlighted potential talks on the sale of Dornier aircraft, Scorpene-class submarines and upgrades to Sukhoi Su-30MKM fighter jets as possible areas of collaboration.

“We are also looking at the potential supply of naval platforms by Indian shipyards. These are all promising areas, and we hope to make progress on them,” he added.

Stay current - Follow FMT on WhatsApp, Google news and Telegram

Subscribe to our newsletter and get news delivered to your mailbox.