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India Malaysia Trade

India's exports to Malaysia reached US$ 6.82 billion in FY26 across 5,476 commodities, with engineering goods, petroleum products and agricultural products among the major export categories.

Last updated: Oct, 2026

Introduction

India established diplomatic relations with the Federation of Malaya (predecessor state of Malaysia) in the year 1957. India and Malaysia have developed close political, economic, and sociocultural relations presently. Malaysia hosts the third largest PIO community in the world after the US and UAE. There is growing engagement in all aspects of the bilateral relationship. The elevation of bilateral ties to a Comprehensive Strategic Partnership in 2024 has further strengthened collaboration, with both countries deepening economic cooperation and exploring new opportunities in emerging technologies and resilient supply chains. As of 2026, India and Malaysia have completed 69 years of diplomatic relations (1957–2026), presenting an opportunity to further strengthen and diversify the existing ties, especially in the economic sphere. Today, India Malaysia trade remains a key pillar of the bilateral relationship, with growing bilateral trade between India and Malaysia, increasing India exports to Malaysia and expanding India Malaysia trade relations contributing to the broader India Malaysia economic partnership.

India-Malaysia Trade

  • Malaysia occupies the 31st position in foreign direct investment (FDI) equity inflows into India with a cumulative FDI amount of US$ 1.34 billion from April 2000 to March 2026.
  • Malaysia ranks 18th in exports and 15th in imports in FY26.
  • Bilateral trade between India and Malaysia stood at around US$ 21.00 billion in FY26.
  • Malaysia is the 16th largest trading partner for India while India stands amongst the 10 largest trading partners globally for Malaysia. Furthermore, Malaysia has emerged as the third largest trading partner for India from the ASEAN region and India is the largest trading partner for Malaysia among the countries of the Southeast Asian region.
  • Surrounded by busy sea lines of communication such as the Strait of Malacca and the South China Sea, Malaysia is also a key pillar of India’s Act East policy and critical to India’s maritime connectivity strategies.

Major exports from India to Malaysia

  • India’s export to Malaysia stood at US$ 6.82 billion from FY26.
  • India exported 5,476 commodities to Malaysia in FY26.
  • Major exported items from India to Malaysia include engineering goods (US$ 1.69 billion), petroleum products (US$ 1.68 billion), meat, dairy and poultry products (US$ 672.13 million), organic and inorganic chemicals (US$ 425.90 million), electronic goods (US$ 256.09 million), gems and jewellery (US$ 203.79 million), and rice (US$ 187.28 million) during FY26.

Major imports by India from Malaysia

  • India’s imports from Malaysia stood at US$ 14.17 billion in FY26.
  • India imported 3,225 commodities from Malaysia in FY26.
  • Major items imported by India from Malaysia include vegetable oil (US$ 3.18 billion), followed by electronic goods (US$ 2.70 billion), non-ferrous metals (US$ 1.45 billion), machinery, electrical and non-electrical (US$ 1.40 billion), others (US$ 947.78 million), organic and inorganic chemicals (US$ 764.05 million), petroleum, crude and products (US$ 735.07 million), transport equipment (US$ 672.48 million), iron and steel (US$ 480.63 million), and artificial resins, plastic materials, etc. (US$ 445.86 million) during FY26.

Economic Relations and Investments

  • On February 8, 2026, Prime Minister Mr. Narendra Modi and Malaysian Prime Minister Mr. Anwar Ibrahim agreed to strengthen cooperation in trade and investment, semiconductors, digital economy, clean energy, infrastructure, start-ups, healthcare and maritime cooperation. The two leaders also reaffirmed their commitment to enhancing trade facilitation, resilient supply chains, digital payments and business-to-business partnerships under the Comprehensive Strategic Partnership.
  • On February 7, 2026, Prime Minister Mr. Narendra Modi highlighted the expanding India–Malaysia economic partnership, noting that over 100 Indian IT companies operate in Malaysia, creating thousands of jobs, and announced the upcoming launch of the Unified Payments Interface (UPI) in Malaysia through the Malaysia–India Digital Council to strengthen digital payments and fintech cooperation. He also underscored India's emergence as a trusted global partner for trade and investment and highlighted the contribution of Indian companies to Malaysia's first and Asia's largest insulin manufacturing facility.
  • On March 19, 2026, India and Malaysia co-chaired the 16th ASEAN Defence Ministers' Meeting-Plus (ADMM-Plus) Experts' Working Group on Counterterrorism in New Delhi, reaffirming cooperation in counter-terrorism, capacity building, information sharing and regional security.
  • On December 10, 2025, India and Malaysia held the third Joint Working Group meeting on Counter Terrorism and Combating Transnational Crime in New Delhi, reaffirming their commitment to strengthening cooperation in counterterrorism, intelligence sharing, capacity building, law enforcement, and combating terror financing and transnational organised crime through bilateral and multilateral platforms.
  • Around 70-80 Malaysian companies, including joint ventures, are currently operating in India across various sectors such as infrastructure, healthcare, telecom, oil and gas, power generation, automotive, FMCG tourism, and human resources, collectively undertaking projects valued at over US$4 billion.
  • On October 6–7, 2025 Malaysia hosted the next round of the ASEAN-India Trade in Goods Agreement (AITIGA) review negotiations in Jakarta, aimed at completing the comprehensive review of the ASEAN–India Trade in Goods Agreement by 2025, underlining sustained commitment to enhancing bilateral and regional trade.
  • IN FY25 India–ASEAN bilateral trade (including Malaysia) reached approximately US$ 123 billion, reflecting the strength of economic ties and expanding trade opportunities between India and ASEAN partners, with Malaysia as a key participant in trade discussions.
  • On August 10–14, 2025 India hosted the 10th Meeting of the ASEAN–India Trade in Goods Agreement (AITIGA) Joint Committee in New Delhi with Malaysia actively participating; discussions focused on advancing the AITIGA review to enhance trade effectiveness, improve market access, and facilitate deeper economic cooperation.
  • On July 10, 2025: Commerce Minister Mr. Piyush Goyal held productive talks with Malaysia’s Minister of Investment, Trade and Industry Mr. Tzafrul Aziz, on fast-tracking the AITIGA review and discussed strengthening the Comprehensive Economic Cooperation Agreement (CECA) reinforcing cooperation on trade policy and long-term economic partnership goals.
  • On July 8, 2025, the sidelines of the BRICS Summit, Prime Minister Mr. Narendra Modi and Prime Minister of Malaysia Mr. Anwar Ibrahim reviewed progress in bilateral cooperation in trade and investment, highlighting deepening economic engagement since Malaysian PM’s visit to India in August 2024.
  • India and Malaysia accelerated the review of the ASEAN–India Trade in Goods Agreement (AITIGA), aiming for completion within 2025. Discussions during ministerial meetings (Mr. Jitin Prasada and Mr. Liew Chin Tong) included enhancements in market access, semiconductor cooperation, services, and alignment with Bureau of Indian Standards (BIS) standards.
  • India and Malaysia share strong political, economic, and socio-cultural ties. To enhance this relationship, both countries signed a Memorandum of Understanding (MoU) on August 20, 2024, aimed at strengthening cooperation in tourism. The MoU was signed by Mr. Gajendra Singh Shekhawat, Minister of Tourism and Culture from India, and Mr. Y B Dato Sri Tiong King Sing, Minister of Tourism, Arts and Culture from Malaysia. This agreement underscores the commitment of both nations to collaborate in promoting tourism, fostering cultural exchanges, and enhancing mutual understanding, ultimately benefiting both economies and enriching their bilateral relationship.
  • India and Malaysia have taken a step towards strengthening their economic ties by agreeing to allow bilateral trade in their respective currencies, which will allow Indian businesses to pay Indian Rupees and vice versa. This is expected to boost trade between the two countries and reduce dependence on the US dollar. The effort of the Indian government to increase its engagement in South Asia has paved the way with the agreement of trading in local currencies. India has tried to economic footprint in the region in the last decade and has signed similar agreements with other countries such as Japan, South Korea, and Iran.
  • 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.

Recent Trends & developments

  • Overall Malaysian investments in India, including those routed through third countries, are estimated at around US$3.3 billion, while announced investments exceed US$8.6 billion, primarily in renewable energy, green hydrogen, green ammonia and infrastructure.
  • On February 6, 2026, Secretary (East), Ministry of External Affairs, Mr. P. Kumaran highlighted that India and Malaysia would review bilateral cooperation across trade, investment, digital and financial technology, energy, healthcare, education, tourism and maritime cooperation during Prime Minister Mr. Narendra Modi's official visit. He also noted that Malaysia is India's third-largest trading partner in ASEAN, with bilateral trade of around US$ 20 billion, and that the 10th India–Malaysia CEO Forum would be held alongside the visit to strengthen business and investment ties.
  • On February 7, 2026, Prime Minister Mr. Narendra Modi highlighted the growing India–Malaysia economic partnership, noting that Indian companies have contributed to Malaysia's first and Asia's largest insulin manufacturing facility, over 100 Indian IT companies operate in the country, and UPI will soon be launched in Malaysia through the Malaysia–India Digital Council to strengthen digital and fintech cooperation.
  • On July 23, 2026, Prime Minister Mr. Narendra Modi and Malaysian Prime Minister Mr. Anwar Ibrahim held bilateral talks to deepen cooperation in trade, semiconductors, digital technologies and supply chains, while exploring new opportunities to strengthen economic partnership between India and Malaysia.
  • In 2025, Malaysia welcomed 1.56 million Indian tourists, while over 330,000 Malaysians visited India, making Malaysia the sixth-largest source of foreign tourists to India. Tourism exchanges have been supported by Malaysia's visa waiver for short-term visits by Indian nationals, extended until December 31, 2026, and India's 30-day double-entry gratis e-Tourist visa for Malaysian nationals, also extended until December 31, 2026. As of June 2026, 199 weekly flights connected 14 destinations in India and Malaysia, operated by Malaysia Airlines, Batik Air, AirAsia, Air India and IndiGo.
  • On 10 July 2025, India’s Commerce Minister Piyush Goyal held productive talks with Malaysia’s Minister of Investment, Trade and Industry, Tzafrul Aziz, on fast-tracking the ASEAN-India Trade in Goods Agreement (AITIGA) review and discussed enhancing the Comprehensive Economic Cooperation Agreement (CECA) between both countries, underlining Malaysia’s role as India’s permanent ASEAN economic coordinator and the prospect of deeper economic integration; bilateral trade under the pact had reached about $121 billion in 2023-24, pointing to strong economic linkages.
  • On the sidelines of the 17th BRICS Summit on 7 July 2025, Prime Minister Narendra Modi and Malaysian Prime Minister Anwar bin Ibrahim reviewed progress in bilateral relations across trade, investment, defence, education, healthcare, tourism and people-to-people contacts since the Malaysian PM’s August 2024 visit to India; Modi welcomed Malaysia’s support for an early and successful conclusion of the ASEAN-India FTA review, reinforcing commitment to enhanced strategic cooperation.
  • In October 2025, Malaysian Prime Minister Anwar Ibrahim publicly reiterated Malaysia’s strong backing for swiftly finalising the ASEAN-India Trade in Goods Agreement, describing the India-ASEAN partnership as a “force for stability and mutual prosperity” and highlighting the mutual interest in deeper economic ties and regional connectivity.
  • Bilateral trade mechanisms have been active: India hosted the 10th ASEAN–India Trade in Goods Agreement Joint Committee meeting from 10–14 August 2025, co-chaired with Malaysia’s Deputy Secretary General (Trade), advancing sub-committee work on customs, market access, rules of origin and standards, reflecting ongoing institutional cooperation and joint commitment to trade facilitation; Malaysia is set to host the next AITIGA meeting in Jakarta in October 2025.
  • On 18 March 2025, a bilateral meeting at MoS level in New Delhi between India’s Minister of State for Commerce & Industry and Malaysia’s Deputy Minister of Investment, Trade and Industry saw both sides agree to step up efforts to speed up the ASEAN-India Trade in Goods Agreement review for a substantial conclusion by 2025, and discussed collaboration in semiconductor industry cooperation, service sector ties, and market access issues to facilitate trade growth.
  • In June 2025, Tata Electronics (part of Tata Group) engaged in discussions to acquire a semiconductor fabrication/assembly plant in Malaysia including Outsourced Semiconductor Assembly and Test (OSAT) facilities intended to bolster India’s semiconductor ecosystem by transferring know-how and talent.
  • On May 28, 2025, Malaysian and Maharashtra officials met in Mumbai to discuss boosting bilateral trade, especially in agriculture. Malaysian agencies highlighted trade growth under Malaysia–India Comprehensive Economic Cooperation Agreement (MICECA) and ASEAN–India Free Trade Agreement (AIFTA) and invited Indian firms to join Malaysia International Halal Showcase (MIHAS) 2025 in Kuala Lumpur.
  • In July 2024, during the visit of a Malaysian Minister to India, both countries have agreed to enhance collaboration between the two nations in the oil palm industry and other sectors.
  • On 12th May, two Indian navy vessels, Delhi and Shakti, led by Rear Admiral Rajesh Dhankhar, arrived at Kota Kinabalu, Malaysia, as part of the Indian Navy's operational deployment. The ships received a warm welcome from the Royal Malaysian Navy and the Indian High Commission in Malaysia.
  • The 3rd edition of the India-Malaysia joint naval exercise 'Samudra Laksamana' is underwent from 28th Feb to 2nd Mar 2024 near Visakhapatnam, with professional interactions and operational activities to enhance maritime cooperation.
  • India and Malaysia marked 65 years of modern diplomatic relations at a commemorative event, “India-Malaysia@65” held on September 9, 2022, organised by the Consortium of Indian Industries in Malaysia (CIIM) and Malaysia India Business Council (MIBC) at the Kuala Lumpur Convention Centre in Malaysia.
  • Taking forward the high-level defence engagements, the Defence Ministers of India and Malaysia held a virtual bilateral meeting in June 2022
  • Minister of Human Resources, Malaysia, Mr. Sivakumar Varatharaju Naidu, in his address at the 17th Pravasi Bhartiya Divas Convention indicated the signing of a Memorandum of Understanding to be signed between India and Malaysia on recruitment and employment of workers.
  • Economic cooperation between Malaysia and India was reviewed at the Foreign Office Consultations (FOC) meeting held in April 2022 and it was decided to enhance all aspects of cooperation and to make the partnership truly meaningful and mutually beneficial.
  • An MOU on the Establishment of an Academic Chair in Ayurveda between the University Tunku Abdul Rahman (UTAR) and the Institute of Teaching and Research in Ayurveda (ITRA) Jamnagar was signed in October 2021
  • Minister of Defence Mr. Rajnath Singh inaugurated the Regional Office of Hindustan Aeronautics Limited (HAL) in Kuala Lumpur, Malaysia on July 11, 2023, recognising defence exports as a key pillar of sustainable growth of the Indian defence industry. This Regional Office will facilitate close defence industrial collaboration between India and Malaysia. It will also serve as a hub for the HAL’s engagement with the wider South-East Asian region and act as a window for other Indian Defense PSUs.
  • India’s public service broadcaster, Prasar Bharati entered into a Memorandum of Understanding with Radio Televisyen Malaysia, the public service broadcaster of Malaysia in order to promote cooperation in public broadcasting in the field of radio and television. The Union Cabinet chaired by the Prime Minister, Mr. Narendra Modi approved the MoU signed on November 07, 2023, which has an immense potential to strengthen the cooperation in the field of broadcasting, exchange of news, and audio-visual programmes as well as significantly augment India’s friendly relations with Malaysia.

Conclusion

India and Malaysia marked 69 years of diplomatic relations in 2026. Building on their Enhanced Strategic Partnership, both countries continue to deepen cooperation across trade and investment, digital economy, semiconductors, clean energy, defence, maritime security, counter-terrorism, healthcare, agriculture and people-to-people exchanges, reflecting a shared commitment to regional peace, stability and sustainable growth in the Indo-Pacific. The continued growth of India Malaysia trade, supported by rising India exports to Malaysia, Malaysia imports from India and expanding bilateral trade between India and Malaysia, is expected to strengthen the India Malaysia economic partnership and create new trade opportunities between India and Malaysia.

Contacts

FAQs

India exports to Malaysia are led by Engineering Goods and Petroleum Products, followed by Meat, Dairy and Poultry Products, Organic and Inorganic Chemicals, Electronic Goods, Gems & Jewellery and Rice in FY26.

India Malaysia trade has strengthened steadily, with bilateral trade between India and Malaysia reaching around US$ 21 billion in FY26. Malaysia also remains one of India's key trading partners within ASEAN.

Semiconductors, digital economy, clean energy, infrastructure, healthcare, maritime cooperation and information technology are key sectors strengthening India Malaysia trade relations.

The Malaysian market offers trade opportunities between India and Malaysia through strong demand across manufacturing, food products, chemicals and technology sectors, supported by the Comprehensive Strategic Partnership and AITIGA review.

Engineering Goods and Petroleum Products are the leading India exports to Malaysia, followed by Meat, Dairy and Poultry Products, Chemicals, Electronic Goods, Gems & Jewellery and Rice.

The India Malaysia economic partnership supports businesses through trade facilitation, resilient supply chains, digital payments, business-to-business collaboration and ongoing reviews of the ASEAN–India Trade in Goods Agreement.

Semiconductors, digital technologies, clean energy, healthcare, infrastructure and maritime cooperation are expected to generate new trade opportunities between India and Malaysia.

The growth of India Malaysia trade is driven by high-level bilateral engagement, expanding investment, stronger supply chains, trade facilitation measures and the review of AITIGA.

Indian businesses can expand India exports to Malaysia by leveraging the Comprehensive Economic Cooperation Agreement (CECA), improved market access, digital connectivity and growing business partnerships in Malaysia.

The growing India Malaysia economic partnership is creating opportunities in high-value sectors such as semiconductors, digital technologies, clean energy and healthcare, complementing India's diversified export basket.

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