Economic Relations and Investments
Malaysia ranked as the 26th largest investor in India with an FDI inflow of US$ 1.12 billion during the period April 2000 to September 2021 (Source: DPIIT, Gol).
Considering the Mauritius route, Malaysia's investments in India are expected to be to the tune of US$ 7 billion.
The highest investment proposals are in the telecom sector, followed by fuels, roads, and highways. Some of the top Malaysian companies have invested in India, notably in the telecom sector (Maxis Communications in Aircel (US$ 2 billion), Axiata in Idea Cellular (US$ 0.75 billion), and Khazanah in IDFC, Apollo Hospitals, Yes Bank, etc. Construction projects include the construction of the airports in Hyderabad (in 2008) and Delhi (in 2010) through a partnership between India’s GMR and Malaysian Airports. The largest presence of Malaysian construction companies outside Malaysia is in India.
There are more than 150 Indian companies, including 61 Indian joint ventures, operating in Malaysia, in diverse sectors such as textiles and yarn manufacture, drugs and pharmaceuticals, specialty chemicals, information technology, education, steel furniture, biotechnology, healthcare, etc.
In terms of tourism, India remains one of the top market sources for Malaysia and has contributed 735,309 arrivals (+22%) in 2019, while more than 332,000 Malaysians visited India during the same period reflecting a healthy tourist exchange.