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India, Malaysia Target $ 10 Billion Trade In 3 Years

New Delhi, 17 January 2005. 

Shri Kamal Nath, Union Minister of Commerce & Industry, has announced that India and Malaysia will target a two-way trade of US $ 10 billion to be achieved within three years from the current level of US $ 3.5 billion. Addressing the Malaysia-India Economic Conference 2005 organised by National Small & Medium Industry Consultative Centre (NASMIC) in Kuala Lumpur, Malaysia, today, he observed that with the rapid expansion of bilateral trade flows, Malaysia had already become India’s largest trading partner in the ASEAN and said that the present environment offered an excellent window of opportunity for India and Malaysia to expand their trade and economic cooperation.

Shri Kamal Nath also invited foreign direct investment (FDI) from Malaysia, saying that there were no restrictions in FDI now in most sectors. And, there were no restriction on repatriation of either the investment or profits. “We have only last week substantially modified the provisions of Press Note 18 so as make crystal clear our intentions to encourage investment”, he said. He reiterated that India’s investment policy, including policies on FDI, were amongst the most liberal in the developing world, adding that India looked especially to FDI in manufacturing sectors and in the greenfield projects.

Shri Kamal Nath further said that he would be introducing a bill on Special Economic Zones (SEZs) in the next session of Parliament and that these would include Bio Technology Parks and Free Trade and Warehousing Zones. “In all these, FDI up to 100% would be permitted, including in the real-estate development and establishment of the zones. We see Special Economic Zones as hubs of manufacturing, and Free Trade & Warehousing Zones as trading hubs. These zones will be specially designated areas, for all economic purposes foreign territory, and therefore units located in them will enjoy a number of tax preferences. These, and the state-of-the-art infrastructure, should make them particularly attractive places to invest and set up business in”, he said.

About 1800 business delegates from Malaysia and 150 businessmen of Indian origin are participating in the Conference, mainly from the small and medium enterprises. Stressing that SMEs hold the key to the future, Shri Kamal Nath said both India and Malaysia must look towards greater interaction between their SMEs in order to boost bilateral trade ties.

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