NEW DELHI – India and Malaysia have agreed to deepen cooperation in key sectors such as semiconductors, financial technology, and defense production, Indian Prime Minister Narendra Modi announced on Tuesday following a meeting with his Malaysian counterpart, Anwar Ibrahim. This comes as both nations seek to reset relations strained since India’s 2019 decision to revoke the autonomy of Kashmir, its only Muslim-majority region.
The diplomatic rift began when Malaysia’s then Prime Minister, Mahathir Mohamad, criticized New Delhi’s move on Kashmir, which led to a significant decline in India’s imports of Malaysian palm oil. However, both countries are now looking to turn a new page and enhance their strategic partnership.
“We have decided to elevate our cooperation to the level of a ‘Comprehensive Strategic Partnership,’” Modi said, though he did not elaborate on the specifics. He highlighted Malaysia’s $5 billion investment in India over the past year and noted that the two countries would boost collaboration in cutting-edge sectors such as semiconductors, fintech, artificial intelligence, and defense technology.
Additionally, Modi underscored the importance of continuing bilateral trade in local currencies, the rupee and ringgit, as India looks to reduce its dependence on the U.S. dollar, particularly in light of sanctions on countries like Russia.
Malaysian Prime Minister Anwar Ibrahim expressed his commitment to strengthening ties with India across all sectors. “There are so many areas that we need to explore further,” he said, though neither leader fielded questions from the press.
The renewed focus on cooperation marks a significant step in resetting relations between the two nations, with both leaders expressing optimism for future collaboration in diverse fields.