India–Malaysia relations have traditionally been close and friendly. India established diplomatic ties with the Federation of Malaya in 1957. Both countries are members of several multilateral forums, including the Commonwealth, ASEAN Regional Forum, G-15, G-77, East Asia Summit, and Indian Ocean platforms. India views its relationship with Malaysia as a core pillar of its Act East Policy. The historical ties between the two nations date back over a millennium, with roots tracing to the Chola Empire. Chola rulers established maritime trade routes between South India and the Malay Peninsula.
Malaysia is home to more than 2.9 million people of Indian origin, making it the country with the second-largest Indian diaspora in the world. Tamil is the dominant language of this community, though Telugu, Malayalam, Punjabi, and other linguistic groups are also present. The stories of the Ramayana form an integral part of Malaysia’s cultural tradition, reflected in its local adaptation known as Hikayat Seri Rama. Temples such as the Sri Veera Hanuman Temple and other religious sites stand as symbols of shared cultural heritage.
In the 21st century, cooperation between India and Malaysia has expanded across areas such as trade, investment, defence collaboration, digital technology, education, healthcare, and climate change. Both nations have adopted a firm stance against terrorism and have clearly stated that there can be no double standards or compromises on the issue.
Prime Minister Narendra Modi’s grand reception upon his arrival in Kuala Lumpur was unprecedented. This marked his first visit to Malaysia since bilateral relations were elevated to a Comprehensive Strategic Partnership in August 2024. During the tenure of former Malaysian Prime Minister Mahathir Mohamad, relations between the two countries had deteriorated. Mahathir had opposed India’s Citizenship Amendment Act and the abrogation of Article 370 in Jammu and Kashmir, and had also given shelter to fugitive Islamic preacher Zakir Naik.
That phase of bitterness has now passed. This was evident when Prime Minister Modi and Malaysian Prime Minister Anwar Ibrahim travelled together in the same car to attend an event organized by the Indian community. In recent years, India–Malaysia relations have seen steady progress. Both countries are keen to strengthen defence and security ties, enhance economic and innovation partnerships, and expand cooperation into new areas.
India primarily imports edible oils from Malaysia, especially palm oil, which accounts for a significant portion of India’s domestic requirements. In addition, India imports electronic goods, semiconductor-related components, chemicals, petrochemical products, rubber, and timber from Malaysia.
Following discussions between Prime Minister Modi and Anwar Ibrahim, several important agreements were signed, including in the areas of semiconductors, healthcare, and security cooperation. Both sides decided to further expand bilateral trade beyond USD 8.59 billion. Cooperation will also be enhanced in investment, trade in local currencies, people-to-people connectivity, energy, agriculture, and food security. India continues to sign new trade agreements, opening up fresh markets for its economy.
On the other hand, India exports petroleum products, pharmaceuticals, automobiles, steel, chemicals, textiles, and information technology services to Malaysia. Indian pharmaceutical companies enjoy a strong reputation in Malaysia, as India’s affordable and high-quality medicines play a crucial role in the country’s healthcare sector. Similarly, Indian technology firms are contributing significantly to Malaysia’s digital development.
To make bilateral trade more balanced and sustainable, the Comprehensive Economic Cooperation Agreement is being reviewed so that both Indian industries and Malaysian partners can benefit equally. Malaysia provides India with significant advantages in raw materials and strategic supplies. Malaysia’s global role in the semiconductor and electronics industry is particularly important for India at a time when the world is seeking to diversify supply chains.
For Malaysia, India represents a vast market, a rapidly growing economy, and immense investment opportunities. India’s large population, digital infrastructure, and manufacturing capabilities are attractive to Malaysian companies.
From a strategic and security perspective, Malaysia is extremely important for India. The Strait of Malacca is one of the world’s most critical maritime routes, through which a large share of global trade passes. India’s Indo-Pacific vision aligns closely with Malaysia’s outlook, making the two approaches complementary. Naval cooperation between the two countries is already in place to ensure maritime security.
During Mahathir’s tenure, Malaysia had moved closer to China, but it has now recognized India’s strategic importance. Both nations support freedom of navigation and security cooperation in the South China Sea and the Indian Ocean. India’s digital payment system has gained global recognition, and UPI-based transactions will now also be available in Malaysia.
Malaysia serves as India’s gateway to Southeast Asia. India is now emerging as a major economic power, and the recent agreements will inject new momentum into bilateral relations between the two countries.
