This article covers trade and investment between India and Malaysia: the value of bilateral trade over recent years, the main goods traded, investment in both directions, and the bilateral and regional agreements that apply. The figures and descriptions come from the Ministry of External Affairs (MEA) bilateral brief of June 2026.

Trade position

According to the MEA brief of June 2026, Malaysia is India's 3rd largest trading partner in ASEAN.

The brief gives the following bilateral trade figures, in USD billions, as per the Department of Commerce, Government of India:

  • 2020-21: exports 6.06, imports 8.39, total 14.45
  • 2021-22: exports 6.99, imports 12.42, total 19.41
  • 2022-23: exports 7.15, imports 12.74, total 19.89
  • 2023-24: exports 7.26, imports 12.75, total 20.01
  • 2024-25: exports 7.31, imports 12.54, total 19.85
  • 2025-26: exports 6.87, imports 14.18, total 21.05

Exports and imports are given from India's side: exports are India's exports to Malaysia and imports are India's imports from Malaysia.

Main goods traded

India's major exports to Malaysia consist of petroleum products; engineering goods; meat, dairy and poultry products; organic chemicals; aluminium articles; and electrical machinery.

India's major imports from Malaysia are palm oil; mechanical appliances; electrical machinery and equipment; mineral fuels, oils and petroleum products; industrial materials; organic chemicals; and rubber.

Since April 2023, bilateral trade can be settled in Indian Rupee (INR), in addition to the current modes of settlement in other currencies.

Trade agreements

The brief lists the following agreements:

  • A bilateral Comprehensive Economic Cooperation Agreement (CECA), covering goods, services and investment, came into effect in July 2011.
  • The ASEAN-India Trade in Goods Agreement (AITIGA) came into force in January 2010.
  • The ASEAN-India Trade in Services & Investment Agreement (AITISA) has been operational since July 2015.

As of the brief, the AITIGA review was ongoing with a view to addressing the imbalances and upgrading the agreement. Malaysia, alongside India, co-chairs the discussions with ASEAN countries.

A Bilateral Investment Treaty (BIT) signed in August 1995 was terminated in March 2016, in order to enter into the new model of BIT.

Malaysian investment in India

Malaysia ranks as the 31st largest investor in India, with FDI of US$ 1.34 billion from April 2000 to March 2026.

Around 70-80 Malaysian companies, including joint ventures, are operating in India, according to the brief. They work in sectors such as infrastructure, healthcare, telecom, oil and gas, power generation, automotive, FMCG, tourism and human resources, and are collectively undertaking projects valued at over US$4 billion.

The brief estimates overall Malaysian investments in India, including those routed through third countries, at around US$3.3 billion. Announced investments exceed US$8.6 billion, primarily in renewable energy, green hydrogen, green ammonia and infrastructure.

The brief presents these as separate measures: FDI recorded from April 2000 to March 2026, an estimate of overall investments that includes investment routed through third countries, and investments that have been announced.

Indian investment in Malaysia

The brief states that Indian companies have invested over USD3 billion in Malaysia and generated more than 30,000 direct jobs. Their presence spans the digital, manufacturing and broader corporate sectors.

As of April 2026, the India Brand Equity Foundation (IBEF) reports that more than 150 Indian companies, including 61 joint ventures, operate in Malaysia. Their sectors include manufacturing, pharmaceuticals, chemicals, information technology, education, biotechnology and healthcare.

Business mechanisms

The India Malaysia CEOs Forum has been in existence since 2010.

Businesses seeking current information can approach the High Commission of Malaysia in New Delhi or the Malaysian consulates in Chennai and Mumbai, whose details are in this guide's practical article.