India Free Trade Agreement with Malaysia

India and Malaysia have had a long-standing trade relationship for decades. The two countries have worked together to promote economic growth and development in the region. Recently, India and Malaysia signed a free trade agreement (FTA) to enhance bilateral trade and economic cooperation.

The India-Malaysia Comprehensive Economic Cooperation Agreement (CECA) was signed in 2011. The agreement is designed to promote trade and investment in goods, services, and investments between the two countries. The CECA covers a wide range of areas, including goods, services, investment, and intellectual property rights.

The CECA has played a significant role in boosting trade between India and Malaysia. The two countries have increased their bilateral trade from $11 billion in 2011 to $17 billion in 2018. India has become Malaysia`s tenth-largest trading partner, while Malaysia is India`s second-largest trading partner in the Association of Southeast Asian Nations (ASEAN) after Singapore.

The CECA has also been instrumental in promoting India`s exports to Malaysia. India`s exports to Malaysia have grown from $3 billion in 2011 to $6 billion in 2018. Malaysia has become an important market for Indian exports, particularly in sectors such as textiles, engineering goods, chemicals, and agriculture.

The CECA has also facilitated the growth of trade in services between India and Malaysia. The two countries have liberalized their markets and provided greater market access to each other`s service providers. India`s services exports to Malaysia have grown from $1.3 billion in 2011 to $2.7 billion in 2018. Malaysia has become an important market for India`s service exports, particularly in sectors such as information technology, business process outsourcing, and healthcare.

The CECA has also encouraged investment flows between India and Malaysia. The two countries have agreed to provide a more favorable investment climate for each other`s investors. India`s investments in Malaysia have grown from $275 million in 2011 to $2 billion in 2018. Malaysian companies have also invested heavily in India, particularly in sectors such as infrastructure, manufacturing, and services.

In conclusion, the India-Malaysia CECA has been a success story in promoting bilateral trade and economic cooperation between the two countries. The CECA has facilitated the growth of trade in goods and services, encouraged investment flows, and provided a more favorable investment climate for each other`s investors. The CECA is a testament to the deepening economic ties between India and Malaysia and provides a platform for further enhancing trade and investment in the region.