Malaysia (Commonwealth Union)_ In a significant development, India and Malaysia convened a high-level bilateral meeting in New Delhi on March 18, 2025, aimed at enhancing trade, investment, and technological collaboration. The meeting brought together Jitin Prasada, the Union Minister of State for Commerce & Industry and Electronics & Information Technology of India, and Malaysia’s Deputy Minister of Investment, Trade, and Industry, Liew Chin Tong. The discussions took place at Vanijya Bhawan, the headquarters of India’s Ministry of Commerce & Industry. The meeting comes at a crucial time as Malaysia holds the position of ASEAN Chair for 2025, making its role vital in shaping regional economic policies.
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Malaysia is an important trade partner for India; it is the third-largest trading partner in ASEAN. With trade between the two countries valued at USD 20.02 billion in 2023-2024, accounting for nearly 17% of India’s total trade with ASEAN, this bilateral dialogue marked a critical step toward further strengthening their economic ties. One of the central topics discussed during the meeting was the ongoing review of the ASEAN-India Trade in Goods Agreement (AITIGA). Both sides agreed on the need to expedite the review process with the aim of reaching a substantial conclusion by the end of 2025. The primary objectives of the review include boosting trade flows and ensuring that the revised agreement benefits both nations equitably.
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In addition to AITIGA, the ministers also engaged in discussions about bilateral trade issues, market access concerns, and broader economic cooperation. They highlighted the growing importance of the semiconductor industry as an area ripe for collaboration. Malaysia, with its advanced semiconductor ecosystem, has the expertise and manufacturing capabilities that can significantly complement India’s ambitions to become a key player in the global chip manufacturing landscape. India is actively fostering investments in semiconductor fabrication, packaging, and research and development (R&D). Malaysia’s semiconductor industry, with its established infrastructure and capabilities, presents an opportunity for India to accelerate its ambitions. Both sides discussed potential collaborations, including joint ventures, technology transfers, and integration of supply chains, which would greatly benefit India’s semiconductor growth.
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Furthermore, the bilateral discussions also explored opportunities for deeper cooperation in the service sector, particularly in IT, the digital economy, financial services, and tourism. Malaysia’s growing role within the ASEAN digital economy aligns with India’s vision of becoming a global leader in IT and digital transformation. Both nations are keen to increase cooperation in emerging technologies, including digital trade, cybersecurity, fintech, and IT-enabled services. Another critical issue that was addressed during the meeting was the Foreign Manufacturers Certification Scheme (FMCS) of the Bureau of Indian Standards (BIS). This scheme ensures that foreign-manufactured goods meet India’s safety and quality standards before entering the market. Both nations recognized the importance of this regulatory framework to ensure the smooth flow of goods between the two countries.
The meeting was attended by senior diplomats and officials from Malaysia’s Ministry of Investment, Trade, and Industry, as well as India’s Ministry of Commerce & Industry, Ministry of Electronics & Information Technology, Ministry of External Affairs, and the Bureau of Indian Standards (BIS). The discussions concluded with both sides expressing optimism that the meeting would accelerate the resolution of trade-related concerns and pave the way for expanded trade and investment opportunities. India and Malaysia’s commitment to completing the AITIGA review, fostering collaboration in the semiconductor sector, and addressing regulatory concerns underlined their shared vision to deepen economic cooperation and strengthen bilateral ties in the years to come.
