India aims to expand bilateral trade with Malaysia to $15 billion by 2013 from $13 billion last year, union minister of commerce, industry and textiles Anand Sharma said.
According to Sharma, India’s bilateral trade with Malaysia stood at nearly $13 billion last year registering a growth of 34% over the previous year. Addressing the members of India-Malaysia CEO Forum, Sharma said, “While we had set a trade target of $15 billion by 2015, I am confident that we will be able to achieve this target definitely by 2013 if not this year. I will be proposing to my counterpart minister Mustapa Mohamed that we revise this target upwards.”
Recalling his visits to Malaysia in July 2010 and February 2011, Sharma said that he had sought investment from Khazanah Nasional Berhad (Government of Malaysia's strategic investment fund) into Indian infrastructure sector through a collaborative venture with IDFC. Sharma informed that a SPV has been created between Khazanah and a subsidiary of IDFC with an equity base of Rs 830 crore for financing the national highway construction projects.
The minister said that during his visits, he identified priority sectors of engagement including roads & highways, railways, airports, IT & ITES, biotechnology, tourism, health services and JV projects in third countries. Subsequently, the two countries have entered into a Comprehensive Economic Cooperation Agreement in February 2011. The agreement has provided considerable momentum to trade and investment on both sides.
According to a government statement, Malaysian investment in India stands at $7.8 billion while Indian investments in Malaysia are in the range of $3 billion. Indian investments in Malaysia are growing steadily. At present, there are more than 100 Indian companies including 61 Indian joint ventures operating in Malaysia. In the past three years alone, about $2 billion have been invested by Indian companies, making it the seventh largest investor in Malaysia.