India and Malaysia Strengthen Ties in Semiconductors and Trade Talks

India and Malaysia have taken steps to expand cooperation in semiconductors, trade, and manufacturing certification, with a key focus on resolving market access issues and boosting bilateral commerce. Union Minister of State for Commerce & Industry and Electronics & IT Jitin Prasada met with Liew Chin Tong, Malaysian Deputy Minister of Investment, Trade, and Industry, in New Delhi to discuss economic collaboration.

Both nations reviewed bilateral trade concerns, semiconductor partnerships, and the Foreign Manufacturers Certification Scheme (FMCS) of the Bureau of Indian Standards (BIS). Senior officials from India’s Ministries of External Affairs, Commerce & Industry, and Electronics & IT participated in the discussions alongside Malaysian representatives.

Malaysia is India’s third-largest trading partner in ASEAN, with total bilateral trade reaching $20.02 billion in FY 2023-24, accounting for 17% of India’s trade with the bloc. Both sides agreed to accelerate the review of the ASEAN-India Trade in Goods Agreement (AITIGA), aiming for a 2025 conclusion. As Malaysia assumes the ASEAN Chair for 2025, the meeting underscored the urgency of addressing India’s growing trade deficit with ASEAN, which has surged due to rising imports.

India’s imports from ASEAN have grown 186% since 2010, significantly outpacing export growth. Concerns over cheap imports affecting domestic industries, particularly in steel and electronics, were also raised. India is advocating for a country-specific review of AITIGA to ensure fair trade practices.

Source: CNBC TV18