NE BUSINESS BUREAU
CHENNAI, FEB 5
The Chennai office of the Malaysian External Trade Development Corporation (MATRADE) announced that the trade between Malaysia and India registered a growth of 10.4 percent at USD 18.24 billion, for the period of January – December 2024.
“MATRADE’s objective in Chennai is to strengthen Malaysia’s exports to southern part of India. As India is aspiring to become the 3rd largest economy by 2027, the country offers huge potential in exports and imports for the Malaysian companies, on top of that, Indian companies must also consider Malaysia as their gateway to enter the Asean market with close to 700 million population,” states Wan Ahmad Tarmizi Wan Idris, Trade Consul at the Trade Section, Consulate General of Malaysia in Chennai (MATRADE Chennai).
- Malaysian exports to India increases by 14.2% to USD 11.4 billion
- The Manufactured Goods sector remains the primary driver of Malaysia’s exports to India, accounting for a staggering 67.4% of the total value in 2024
“Trade between Malaysia and India recorded a significant growth in 2024, with a total trade of USD 18.24 billion, an increase of 10.4% compared to the previous year. Malaysian exports to India increased by 14.2% to USD 11.4 billion during the same period. Malaysia recorded a trade surplus of USD 4.5 billion. India also recorded an increase of 4.6% in exports to Malaysia with a value of USD 6.5 billion in 2024,” the statement added.
Trade between both countries has reached the growth trajectory that both countries enjoyed prior to Covid-19 and trade is expected to continue to grow in 2025 and beyond in a modest way.
Manufactured goods lead the way
The Manufactured Goods sector remained the primary driver of Malaysia’s exports to India, accounting for a staggering 67.4% of the total value in 2024. This sector recorded an increase of 14.2% compared to 2023.
Among the sub-sectors within the Manufactured Goods sector that performed well in 2024 are as follows:
- Manufactures of Metal: up 24.2%
- Machinery, Equipment & Parts: up 56%
- Palm oil based manufactured goods: 22.8%
- Transport equipment: up 226%
- Processed Food: up 16.7%
Forecast for Malaysia-India trade relations
“Trade between Malaysia and India is forecasted to grow on both export and import in 2025 and beyond due to the improved global economic outlook and also increase in domestics demand in both countries. Growing middle class, urbanization and higher consumer spending in India will be the major drivers for our export to India while a strong manufacturing and services sectors in Malaysia will spur bigger demands for imported goods,” added Wan Ahmad Tarmizi Wan Idris.
Malaysian Trade Office in India will continue to carry out trade promotional activities to promote Malaysian companies and Malaysian capabilities in India and optimistic that Malaysia will further strengthen its trade relationship with India.
