India, Malaysia trade to cross $4.5 bn

Indian and Malaysian companies on Monday signed 12 MoUs in diverse fields, including building of an international airport at Hyderabad, even as Malaysian Prime Minister Abdullah Ahmad Badawi described the current volume of Indo-Malaysian trade as inadequate.

"Over the last nine years there has been a 500 per cent increase in India-Malaysia trade and our bilateral trade will rise beyond $4.5 billion this year. India's total imports from Malaysia accounted for only 3.4 per cent while

that of Malaysia's was 0.8 per cent. These statistics indicate the large upside potential for both Malaysia and India," Badawi told a gathering of entrepreneurs in New Delhi.

The Malaysian leader said though Indian entrepreneurs have invested nearly a billion dollars in his country, it appeared "very little" compared to the vastness of opportunity.

He sought Indian investment as well as technical expertise in the field of information technology, manufacturing, biotech, engineering and pharmaceuticals.

Tax incentives would be provided to the investors, he said. The MoUs signed on Monday included Malaysia Airports Management and Technical Services and Hyderabad International Airports Authority Ltd agreeing to build a new airport at Shamshabad.

International Tractors Ltd has signed an MoU with Tracoma Holdings of Malaysia to assemble and market within Malaysia its range of tractors and other farm equipment.