SERI KEMBANGAN, Dec 4 — India, Malaysia’s 12th largest trading partner, expects trade to resume to pre-recession levels next year as more Indian companies begin to set-up base here.
Deputy Indian High Commissioner to Malaysia BN Reddy said two-way trade is most likely to hit US$10.5 billion (RM36 billion) next year.
Saying that trade between India and Malaysia declined 28 per cent, as of September 2009, compared with the same period in 2008, he added that it was, however, beginning to pick up momentum.
“In 2008, trade stood at US$10.5 billion and we are reasonably confident the 2010 volume will be restored to this level given the continuous interest shown by Indian industry players in the Malaysian market.
“Volume of trade more than doubled from US$5 billion in 2005 to US$10.5 billion in 2008 and I am also optimistic that the trend will pick up as products traded between India and Malaysia is constantly being diversified,” he told Bernama after launching the Enterprise India Pavilion at the five-day Malaysia International Trade and Consumer Fair.
Reddy said machineries, electrical, textiles, pharmaceuticals and food products are slowly emerging as India’s main exports to Malaysia while crude palm oil was India’s main import from Malaysia.
“With an investment of US$1 billion, in the last 18 months pumped in by Indian companies, we are upbeat over the potential growth.
“India and Malaysia have already touched the critical level of engagement. With the sluggish global environment, there will be greater opportunities and it is expected to boost trade and commerce,” he said.
He said with signs of recovery taking place in the global economy, 2010 would be a promising year.
Commenting on India’s participation in the 8th Malaysia International Trade and Consumer Fair, he said this platform would fortify further participation from both countries.
Meanwhile, the Confederation of Indian Industry (CII), India’s premier apex business chamber, took the lead by bringing 24 companies from India to showcase their products such as handicrafts, handlooms, garments and cosmetics at the fair.
Deputy Director of CII Amit Panjwani said the companies hope to secure sales of about US$20,000.
“The market is huge in Malaysia and the potential here is great. Response, too, has been good so far.
“The companies are also looking at the possibility of appointing dealers in Malaysia in order to tap the Asean market,” he explained — Bernama
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