Malaysia

India, Malaysia will discuss trade pact review during Modi's visit

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 Ministry of External Affairs.

Updated 5 months ago · Published on 06 Feb 2026 8:27AM

India, Malaysia will discuss trade pact review during Modi's visit
Malaysia received more than 1.4 million Indian visitors, while 300,000 Malaysians travelled to India in 2025. - February 6, 2026

INDIA and Malaysia will discuss a review of their bilateral free trade agreement, among other issues, during Prime Minister Narendra Modi's visit to Malaysia 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 Ministry of External Affairs.

India and Malaysia are cooperating within ASEAN to expedite 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 on Thursday.

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, reported Bernama.

Modi and Prime Minister Datuk Seri 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 to set the path for future engagements," he said.

India is also keen to strengthen its defence and security ties with Malaysia, with Kumaran highlighting 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 areas that look promising, and we hope to be able to make progress on them,” he added. – February 6, 2026

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