Bilateral Ties On Upward Trajectory As India's Modi Heads To Malaysia

By Siti Noor Afera Abu

KUALA LUMPUR, Feb 6 (Bernama) — Indian Prime Minister Narendra Modi’s visit to Malaysia tomorrow is expected to strengthen Malaysia-India ties further, following the elevation of bilateral relations to a Comprehensive Strategic Partnership (CSP) in 2024, particularly in trade and economic cooperation across multiple sectors, analysts said.

The upgrade was announced during Prime Minister Datuk Seri Anwar Ibrahim’s maiden visit to New Delhi, positioning India among Malaysia’s six CSP partners, which also include Australia, China, the United States, Japan, and Vietnam.

According to analysts, economic discussions are expected to focus on operationalising the CSP by enhancing trade flows, investment cooperation, and connectivity to facilitate greater business engagement, with positive spillover effects for the wider Southeast Asian region.

"Modi’s last visit to Putrajaya was in 2018, before a brief diplomatic row in 2019, and the upcoming trip signals a conscious reset in relations, with bilateral ties now on a clear upward trajectory," Institute of Strategic & International Studies (ISIS) Malaysia analyst Dr Yanitha Meena Louis told Bernama.

She said the visit, Modi’s first overseas trip of 2026, underscores the importance New Delhi places on its relationship with Putrajaya, particularly following his absence from the ASEAN Summit in Kuala Lumpur last year due to unforeseen circumstances.

University of Nottingham Malaysia assistant professor of business economics, Dr Tan Chee Meng, said India’s growing engagement with Southeast Asia, including Malaysia, could play a constructive role in strengthening trade ties and providing greater balance in the region’s economic landscape. He noted that India is currently ASEAN’s sixth-largest trading partner and that trade volumes could be expanded further through stronger commercial cooperation, increased investments, and deeper private sector linkages.

“That definitely would actually bring lots of welcome investment and lots of balancing that we actually need to counter the influence of the Chinese and the Americans coming into the region, as ASEAN countries prefer not to take sides,” he added.

The value of annual bilateral trade between Malaysia and India is around US$20 billion, with a significant rise in two-way travel.

Beyond that, Dr Yanitha reiterated that there is scope for both countries to expand cooperation in areas aligned with India’s commitment to play a more active role as a “first responder” in the region, while advancing shared ambitions to strengthen connectivity and economic collaboration across the Global South.

-- BERNAMA