India and Malaysia Forge Stronger Economic Ties

India and Malaysia are resetting bilateral relations to enhance trade, worker movement, and use of local currencies in transactions. Past tensions over Kashmir had affected trade but the new Malaysian Prime Minister Anwar Ibrahim is committed to fostering good ties. The partnership aims to explore new areas of economic cooperation.

India and Malaysia are working to reset their diplomatic and economic relations, focusing on boosting trade, movement of workers, and settling transactions in their own currencies. This comes after relations soured in 2019 over Kashmir-related remarks by the then Malaysian Prime Minister Mahathir Mohamad.

Under the new leadership of Prime Minister Anwar Ibrahim, Malaysia has shown a keenness to rebuild ties with India. In a positive gesture, palm oil imports to India from Malaysia have increased, and trade settlements between the two countries in their local currencies, rupee and ringgit, have commenced since April last year.

During Anwar's first visit to New Delhi as Prime Minister, both countries agreed to elevate their partnership to a 'Comprehensive Strategic Partnership'. Economic cooperation in sectors like semiconductors, financial technology, defence, and artificial intelligence is being prioritized. India has also committed to a one-off export of 200,000 metric tons of non-basmati rice to Malaysia, and expressed an interest in selling defence equipment and aircraft.

(With inputs from agencies.)