India and Malaysia on Sunday unveiled an expansive roadmap to deepen their Comprehensive Strategic Partnership, placing strong emphasis on semiconductors, digital payments, defence cooperation and trade facilitation, following wide-ranging talks between Prime Minister Narendra Modi and his Malaysian counterpart Anwar Ibrahim in Kuala Lumpur.
The joint statement issued after one-on-one and delegation-level meetings underscored a clear intent by both sides to future-proof bilateral ties amid global economic uncertainty, supply chain disruptions and evolving security challenges in the Indo-Pacific. The visit, Modi's first official trip to Malaysia since the partnership was elevated to Comprehensive Strategic Partnership (CSP) in August 2024, marked a decisive shift from traditional cooperation to strategic and technology-driven engagement.
A key outcome was the decision to deepen collaboration in the semiconductor sector, which both leaders described as "strategic" for global technology resilience. India and Malaysia agreed to strengthen the semiconductor value chain through joint initiatives in innovation, workforce development and supply chain stability. Ongoing cooperation between IIT Madras Global and Malaysia's Advanced Semiconductor Academy, as well as between industry bodies from both countries, was highlighted as a foundation for building a competitive ecosystem.
Trade and investment featured prominently in the discussions, with both leaders acknowledging strong growth in bilateral commerce and calling for greater balance and diversification. Malaysia recognised India as a vital global economic partner, while both sides agreed to enhance trade facilitation in emerging areas such as semiconductors, digital economy and advanced manufacturing. The leaders welcomed the ongoing review of the ASEAN-India Trade in Goods Agreement (AITIGA) to make it more contemporary and business friendly, and urged optimal use of the Malaysia-India Comprehensive Economic Cooperation Agreement (MICECA).
A notable financial sector development was the push to expand local currency settlement in bilateral trade. The two Prime Ministers welcomed cooperation between the Reserve Bank of India and Bank Negara Malaysia to promote invoicing and settlement in Indian Rupee and Malaysian Ringgit, a move seen as reducing transaction costs and exposure to global currency volatility.
Digital cooperation received a major boost with the formalisation of the Malaysia-India Digital Council, envisaged as a platform to drive collaboration in fintech, artificial intelligence, cybersecurity, digital public infrastructure and emerging technologies. Complementing this, both leaders welcomed the partnership between NPCI International and PayNet Malaysia to establish bilateral payment linkages, which will enable seamless, low-cost digital payments for tourists, students and small businesses.
On defence and security, the two leaders expressed satisfaction with the growing depth of military-to-military engagement. They welcomed the outcomes of the Malaysia-India Defence Cooperation Committee, including the establishment of a Strategic Affairs Working Group and a Su-30 forum. The successful conduct of the fifth edition of the joint military exercise 'Harimau Shakti' in Rajasthan last December was cited as evidence of operational synergy.
Both countries also reiterated zero tolerance for terrorism, strongly condemning terrorism in all forms, including cross-border terrorism. They agreed to strengthen cooperation in counter-radicalisation, combating terror financing, and preventing misuse of emerging technologies by terrorist groups, while also addressing linkages between terrorism and transnational organised crime.
Energy cooperation emerged as another strategic pillar, with Malaysia's PETRONAS and Gentari expanding their footprint in India's renewable energy and green hydrogen sectors. The leaders stressed the potential for large scale solar projects and clean energy collaboration aligned with net-zero ambitions. Malaysia also acknowledged India's leadership through the International Solar Alliance.
Food security and palm oil cooperation were addressed, with Malaysia reaffirming its commitment as a reliable supplier of sustainable palm oil. Both sides agreed to collaborate across the palm oil value chain, including downstream, value-added products, while ensuring timely resolution of market access issues.
People-to-people ties, education and mobility featured strongly, reflecting the deep social links between the two countries. Modi invited Malaysian students to participate in India's 'Study in India' programme, while both sides encouraged greater cooperation in technical and vocational education. The operationalisation of the Thiruvalluvar Chair and Centre at Universiti Malaya, along with scholarships for Malaysian nationals, was welcomed as a cultural milestone.
Regionally, the two leaders reaffirmed their commitment to ASEAN centrality, a free and open Indo-Pacific, and respect for international law, including UNCLOS. Malaysia welcomed India's 2026 BRICS Chairmanship and reiterated support for India's permanent membership of a reformed UN Security Council.
The visit concluded with the signing and exchange of multiple agreements spanning semiconductors, healthcare, disaster management, anti-corruption cooperation, audiovisual co-production and social security, reflecting the breadth of the renewed partnership. Prime Minister Modi thanked Malaysia for the warm hospitality and invited Prime Minister Anwar Ibrahim to visit India soon, signalling sustained high-level engagement between the two nations.
