PM Modi To Push Defence Ties And Trade Cooperation As India Strengthens Comprehensive Strategic Partnership with Malaysia

Prime Minister Narendra Modi’s forthcoming visit to Malaysia on February 7–8 is being framed as a continuation of the deepening Strategic Partnership between the two countries, with an emphasis on defence collaboration alongside broader economic and people-to-people ties.
The Indian government has signalled a specific focus on defence opportunities during the visit, highlighting potential sales of Dornier aircraft, maintenance work for Scorpene submarines, and support for the SU-30 fleet. These areas reflect a pattern of sustained defence industry engagement between India and Malaysia, underpinned by a broader objective to strengthen regional security co-operation within the Indo-Pacific and to support India’s Act East Policy.
Malaysia represents a significant pillar in India’s strategy to engage with ASEAN, given its substantial Indian diaspora and its role as a key hub in the region. The Indian government notes that Malaysia houses around 2.9 million people of Indian origin, making it the third-largest diaspora community globally and the second-largest People of Indian Origin (PIO) contingent.
This demographic dimension complements the economic and diplomatic ties, underscoring the potential for enhanced people-to-people exchanges, tourism, and educational cooperation. In this context, the two countries have cultivated a robust visa framework designed to facilitate travel for tourists and students alike.
Malaysia has allowed visa-free travel for Indian nationals since December 2023, while India has offered gratis tourist visas for Malaysian nationals since July 2024, with the arrangement currently valid until December 2026. These liberalised visa regimes have coincided with growing bilateral tourism, evidenced by the sizeable influx of visitors from both sides in recent years.
On the economic front, bilateral trade between India and Malaysia reached nearly 19.85 billion USD in the 2024–25 financial year, positioning Malaysia as India’s third-largest trading partner within ASEAN and India among the top ten trading partners for Malaysia.
The economic dimension of the Comprehensive Strategic Partnership is reinforced by the ability to settle trade in Indian rupees, a facility that became available in 2023 and remains in use alongside traditional currency settlements. The presence of this rupee-based settlement mechanism is illustrative of a broader intent to diversify and streamline financial interactions between the two economies, potentially reducing transaction costs and increasing the speed of commercial exchanges.
In a related development, a Thiruvalluvar Chair of Indian Studies was established at the University of Malaya, Kuala Lumpur, a move announced in August 2024 and brought into operation in October 2025. These chairs reflect a broader cultural diplomacy strategy designed to promote academic exchanges, research collaboration, and mutual understanding of each country’s historical and contemporary traditions.
The establishment of regional defence engagement channels has included an Indian defence presence in Kuala Lumpur, such as the opening of the first regional office of Hindustan Aeronautics Limited (HAL) in 2023, a development announced during the visit of India’s Raksha Mantri.
The defence dimension of the partnership is complemented by ongoing participation in multilateral and regional fora, as well as bilateral defence dialogues and visits by senior officials. The trajectory of cooperation in this sector signals both countries’ commitment to building interoperability, industrial collaboration, and long-term resilience of defence capabilities.
High-level political exchanges have been regular and sustained since 2022, with exchanges at the level of the two prime ministers and their respective cabinets. External Affairs Minister S Jaishankar attended the 20th East Asia Summit in Kuala Lumpur in October 2025 on behalf of Prime Minister Modi.
During the current visit, Modi is expected to engage with Malaysian officials on multiple fronts beyond defence, including trade facilitation, investment promotion, and continued cooperation in education and culture.
Public diplomacy elements of Modi’s trip include engagements with the Indian diaspora and with business leaders, aimed at reinforcing confidence in bilateral opportunities and mobilising private-sector partnerships.
Such engagements are expected to showcase success stories of Indian investment and entrepreneurship in Malaysia, and to highlight opportunities for new collaborations in sectors ranging from health and education to technology and logistics.
The diaspora dimension is particularly important given the scale of the Indian community in Malaysia and the potential for channelling remittances, investment, and knowledge transfer back to India, thereby reinforcing the social and economic fabric of the bilateral relationship.
The collaboration across defence, trade, and people-to-people linkages is presented as a holistic approach to strengthening strategic ties that can contribute to regional stability and shared prosperity. The ongoing alignment of policy instruments, defence industrial partnerships, and cultural exchange initiatives signals a multi-layered strategy designed to produce tangible outcomes in both bilateral and regional contexts over the coming years.
Based On ANI Report
No comments:
Post a Comment