India and Malaysia share a multifaceted relationship rooted in historical, cultural, and economic ties that date back centuries, with formal diplomatic relations established in 1957 following Malaysia's independence.

Over the decades, this relationship has evolved significantly, marked by milestones like the Strategic Partnership in 2010 and its elevation to an Enhanced Strategic Partnership in 2015 during Indian Prime Minister Narendra Modi's visit to Malaysia.

As of August 20, 2024, the two nations further upgraded their ties to a Comprehensive Strategic Partnership during Malaysian Prime Minister Anwar Ibrahim's visit to India, reflecting a commitment to deepen cooperation across various sectors.

The connection between India and Malaysia traces back to ancient trade routes and cultural exchanges, with Indian influences evident in Malaysia's language, religion (Hinduism and Buddhism), and architecture.

Malaysia hosts one of the largest Indian diaspora communities globally, with approximately 2.77 million people of Indian origin (about 8.5% of Malaysia's population), fostering strong people-to-people links.

High-level exchanges, such as Modi's 2015 visit and Anwar's 2024 visit, have reinforced these bonds, alongside cultural initiatives like the Indian Council of Cultural Relations center in Kuala Lumpur.

Economic ties are a cornerstone of India-Malaysia relations. Bilateral trade reached US$20.01 billion in FY 2023-24, making Malaysia India's 16th largest trading partner and India's third-largest partner in ASEAN. Key Indian exports to Malaysia include aluminum, petroleum products, and machinery, while Malaysia supplies India with palm oil (3 million metric tonnes annually out of India's 9.7 million tonnes imported), crude petroleum, and organic chemicals.

The Malaysia-India Comprehensive Economic Cooperation Agreement (MICECA), signed in 2011, has boosted trade, and recent moves to settle transactions in rupees and ringgit (since April 2023) aim to reduce currency risks for businesses.

Malaysia has invested around US$5 billion in India in recent years, with potential growth in sectors like semiconductors, digital technology, and renewable energy-highlighted by a planned US$4.5 billion investment by Malaysia's Petron in green ammonia projects.

Defence ties have expanded since the 1993 defence cooperation memorandum, featuring joint exercises like Harimau Shakti (army), Samudra Laksamana (navy), and Udara Shakti (air force).

In 2023, India opened a regional office of Hindustan Aeronautics Limited in Kuala Lumpur, and discussions for a 'Su-30 forum' to share expertise on Sukhoi aircraft operations signal deeper collaboration.

Malaysia's strategic location in the Indo-Pacific aligns with India's Act East Policy and Indo-Pacific Oceans Initiative (IPOI), though Kuala Lumpur has yet to fully engage with the IPOI framework.

Both nations share interests in a free and open Indo-Pacific, with Malaysia resisting Chinese pressure in the South China Sea, as seen in its oil exploration plans off Sarawak.

Anwar Ibrahim's 2024 visit to India marked a reset after tensions in 2019-2020, when former Malaysian PM Mahathir Mohamad criticized India's Kashmir policy and Citizenship Amendment Act, prompting India to briefly curb Malaysian palm oil imports. The thaw began with Muhyiddin Yassin's government in 2020, and Anwar's leadership since 2022 has accelerated reconciliation.

Key outcomes from 2024 include:

• MoUs on digital technology, worker welfare, and financial services.
• India's support for Malaysia's bid to join BRICS.
• A one-time export of 200,000 metric tons of non-basmati rice to Malaysia despite India's export ban.
• Plans to expedite the review of the ASEAN-India Trade in Goods Agreement (AITIGA).

Despite progress, challenges persist:

• Extradition of Zakir Naik: Malaysia has denied India's requests to extradite the controversial preacher since 2017, causing friction.
• Labor Issues: Reports of exploitation of Indian migrant workers (around 140,000 in Malaysia) in palm plantations remain a concern, though a 2024 MoU aims to address this.
• Geopolitical Differences: Malaysia's quieter diplomacy with China contrasts with India's more assertive Indo-Pacific stance.

Looking ahead, India and Malaysia aim to leverage their Comprehensive Strategic Partnership to expand cooperation in emerging areas like AI, semiconductors, and defence manufacturing. Malaysia's ASEAN chairmanship in 2025 offers a platform to strengthen India-ASEAN ties, while initiatives like the India-Malaysia Startup Alliance and increased tourism (1 million Indian tourists projected for 2024) promise economic and cultural dividends. However, navigating geopolitical sensitivities and resolving bilateral irritants will be key to sustaining momentum.