India-Malaysia Trade Set To Soar Under Comprehensive Strategic Partnership: Indian Minister

By V. Sankara

KUALA LUMPUR, Sept 15 (Bernama) -- India is confident that the newly elevated Comprehensive Strategic Partnership (CSP) with Malaysia will drive bilateral trade to greater heights, targeting US$25 billion by 2026, said India’s Minister of State for External Affairs, Kirti Vardhan Singh.

The minister, who is on his maiden visit to Malaysia from Sept 12-15,  expressed optimism about the strong collaboration between the two countries.

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"With over US$20 billion in annual trade, India and Malaysia are working towards enhancing this figure to US$25 billion by 2026,” he said in his speech during a luncheon hosted by the Malaysia-Indian Business Council (MIBC) and the Consortium of Indian Industries in Malaysia (CIIM) here on Saturday (Sept 14). 

“With the synergy I see between CIIM and MIBC, I am confident we will not only reach but exceed this target before time," he added. 

Also in attendance were MIBC president Tan Sri Kuna Sittampalam, Chairman of CIIM, Datuk Umang Sharma, and Indian High Commissioner to Malaysia, B.N.Reddy. 

Prime Minister Datuk Seri Anwar Ibrahim during his official visit to India from Aug 19-21, announced that Malaysia and India have agreed to elevate their relationship from an Enhanced Strategic Partnership (ESP) to a CSP. 

Malaysia, is currently India’s third-largest trading partner in the ASEAN region, and ranks among India’s top ten trading partners.

Kirti Vardhan Singh, who is also India’s Minister of State for Environment, Forest and Climate Change, highlighted the significance of key sectors such as engineering goods, pharmaceuticals, chemicals, and mobile phones in the bilateral trade basket.

"India is also the largest market for Malaysia’s palm oil and one of the biggest suppliers of food products to Malaysia. We will continue to work towards greater food security for both countries," he stated.

Kirti Vardhan Singh also noted the recent agreement permitting trade settlements in local currencies – the Indian rupee and Malaysian ringgit – which he believes will further promote bilateral trade.

The minister pointed out that India's high gross domestic product (GDP) growth rate and economic development efforts offer vast opportunities for Malaysian businesses.

“India has recorded an 8.2 per cent growth rate for 2023-2024, and we remain the fastest-growing major economy globally, presenting enormous prospects for Malaysian businesses," he added.

He praised Malaysia's participation in India's renewable and solar energy sectors and its contribution to infrastructure development, as well as Malaysia’s expertise in the semiconductor industry.

"Malaysia’s experience in semiconductor fabrication, testing, and assembly is of immense value to India, especially under our National Semiconductor Mission. We seek further collaboration in digital technologies, fintech, innovation, and startups," he said.

The minister also emphasised India’s prowess in the information technology (IT) sector, highlighting the Memorandum of Understanding (MoU) signed last month on digital technology cooperation between the two nations during Anwar’s recent official visit to the republic.

"The signing of the MoU in digital technologies last month marks another important development. We look forward to actively engaging with the Malaysia-India Digital Council to drive our cooperation in ICT, Artificial Intelligence, quantum computing, cyber security, and e-governance solutions." 

Kirti Vardhan Singh also acknowledged the vital role of the Indian diaspora in Malaysia as a "living bridge" between the two countries and praised their contributions to strengthening bilateral trade and investment ties.

Meanwhile, Sharma in his speech expressed gratitude to the Indian minister for his commitment to strengthening bilateral relations and the Indian government’s focus on deepening ties with Malaysia, especially following Anwar’s successful visit to India in August.

He highlighted the significance of economic cooperation between the two countries, noting that last year, bilateral trade had reached a new milestone of US$20 billion.

He further emphasised the potential for this figure to grow to US$30 billion by 2027, in line with the 70th anniversary of diplomatic relations between India and Malaysia.

-- BERNAMA