India-Malaysia trade relations have expanded significantly since 1991 so much so, that

currently, India is Malaysia's largest trading partner while Malaysia is India's second
largest trading partner in the Association of South East Asian Nations (ASEAN).

From India's perspective,the following companies have established their

operations in Malaysia.

• 61 joint ventures in sectors ranging from palm oil refining, power, railways, civil
construction, training and information technology.
• 67 Indian IT companies enjoy Multimedia Super Corridor (MSC) status in
Malaysia.
• There are about 20 other companies in various manufacturing sectors in Malaysia.

Trade Estimates

The following estimates can be drawn in favor of trade between India and Malaysia:

• In 2006, India-Malaysia trade reached a record US $ 6.58 billion, registering a

growth of approximately 22.84% over the previous year and ten times the amount
that existed fourteen yeas ago.
• Malaysia has traditionally enjoyed a handsome surplus, of between US $ 1 billion
to US $ 1.5 billion, in its trade with India.
• Trade between India and Malaysia has expanded steadily from US $ 0.6
million in 1992 to US $ 4.3 billion in 2004, US $ 5.1 billion in 2005 and US $
6.58 billion in 2006.
• India's exports have increased by 98 % from US $ 672.5 million in 2003 and US $
1.3 billion in 2004. However, the trend could not be sustained in 2005, with
exports registering a 15 % decline to US $ 1.1 billion as against the comparable
figure for 2004.

India's export basket to Malaysia is large and diversified consisting of meat and meat
preparations, sugar, rice (other than basmati), wheat, fresh vegetables and fruits, cotton
yarn, RMG cotton and accessories, primary and semi-finished iron, made-ups, fabrics,
machinery and instruments, electronic goods and metal manufactures.

Malaysia's major exports to India during 2006 were Crude Petroleum, Palm Oil,
Electronic & Electrical products, Chemicals & Chemical products and Petroleum
products.

Though balance of trade has favored Malaysia, primarily because India imports
expensive commodities from the former like palm oil and petroleum on a large scale the
India Malaysia trade is benefiting both nations.