India, Malaysia to broaden trade relations in semiconductors and renewables
What's the story
India and Malaysia are contemplating a reassessment of their 2011 Comprehensive Economic Cooperation Agreement (CECA).
They are also looking into trading in their respective national currencies, said Malaysian Foreign Minister Zambry Abdul Kadir.
During his three-day trip to India, Kadir told PTI that he and External Affairs Minister S Jaishankar explored the possibility of broadening trade relations in emerging sectors.
They include electronics, semiconductors, fintech, renewable energy, new technology, and start-ups.
Details
Framework for trade in national currencies
Both nations are in the process of finalizing a structure for conducting trade using national currencies, with the goal of bolstering local currencies and benefiting both countries.
India is currently engaging in discussions with multiple partner nations to establish alternative methods for trade settlements in national currencies, alongside the use of freely convertible currencies like the US Dollar.
What Next?
Revisiting the CECA to include new domains
Kadir emphasized the importance of re-evaluating the CECA, which encompasses trade in goods, services, investments, and the movement of people, to incorporate new trade areas like the digital economy and other burgeoning sectors.
The Malaysian foreign minister also expressed his gratitude to India for supplying 1,70,000 metric tons of non-basmati white rice during Malaysia's recent shortage.
Insights
Expanding defense cooperation between India and Malaysia
Malaysia is keen on enhancing defense collaboration with India, including the procurement of military platforms and hardware.
When questioned about Malaysia's interest in acquiring BrahMos supersonic missiles from India, Kadir refrained from commenting but mentioned that the respective ministries of both countries would investigate pertinent issues to deepen defense ties.