News Brief
India Set To Review Trade Agreement With Malaysia As Deficit Hits $5.5 Billion
Indian exports (Representative image) (GettyImages)
Amid growing trade imbalance with Malaysia, India has reportedly begun and exercise to review its existing trade agreement with the Southeast Asian country, examining the rules of origin under the pact.
The India-Malaysia Comprehensive Economic Cooperation Agreement, was signed in 2011 when the trade deficit was $2.6 billion, which surged to $5.5 billion by FY24.
The Commerce department is also preparing a detailed list of non-tariff barriers that the Indian industry encounters while exporting to Malaysia, Economic Times reported citing officials.
India exports a variety of goods to Malaysia, including petroleum and aluminium products, buffalo meat, organic chemicals, and electrical machinery and equipment and light naptha.
On the other hand, the primary Indian imports from Malaysia include vegetable oils, electrical machinery, petroleum products, nuclear reactors, boilers, and chemicals from Malaysia.
The pact is a comprehensive agreement that covers trade in goods and services, investments, and movement of natural persons.---
The central government plans to engage in widespread consultations with trade and industry sectors and discuss flexibility in rules of origin as it seeks a higher share in the global value chains.
Rules of origin are the criteria which determine the national source of a product and thereby the duty concessions.
