India,Malaysia likely to announce conclusion of Ceca talks

With trade and business as its strong underpinnings,Prime Minister Manmohan Singh and Malaysian Prime Minister Dato Sri Mohd Najib bin Tun Abdul Razak are set to give a strategic direction to the overall relations between the two countries.

With trade and business as its strong underpinnings,Prime Minister Manmohan Singh and Malaysian Prime Minister Dato Sri Mohd Najib bin Tun Abdul Razak are set to give a strategic direction to the overall relations between the two countries. Singh landed in Kuala Lumpur today in his second leg of a three-nation tour. This is the first bilateral visit by an Indian Prime Minister in nine years. He was received by Malaysias Deputy Foreign Minister and Human Resources Minister.

In their joint statement,the two leaders are likely to announce the conclusion of negotiations over a Comprehensive Economic Cooperation Agreement (Ceca). The sense of urgency to finalise a trade pact can be gauged by the fact that India and Malaysia have had seven rounds of meetings in as many months. Bilateral trade between the two countries that stood at less than $5 billion in 2005 is likely to double to $10 billion this year.

India would have linked up with all major economies in East Asia after a Ceca with Malaysia. We already have trade pacts with South Korea,Singapore and ASEAN. Talks for a Comprehensive Economic Partnership Agreement with Japan were concluded during Singhs annual summit talks with Japan Prime Minister Naoto Kan a day ago, sources said.

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Under Najib,who is the first Malaysian Prime Minister to visit India in the very first year of assuming office,New Delhi sees a conscious effort to move away from the excessive orientation towards other countries. India hopes that the two countries realise the full potential of their partnership. Najibs decision to come to India with six members of Cabinet was a conscious one. The only other countries he visited in his first year are China,Saudi Arabia and the United Arab Emirates, a source pointed out.

A Ceca with Malaysia will give business an enormous boost, sources said. In the last three years,Indian investment in Malaysia has topped $2.5 billion. This includes Reliance Industries $300 million in a polyester unit,L&Ts 200 million in a switchgear company and Ballarpur Industries $261 million acquisition of a paper and pulp company. The sources said a couple of big-ticket announcements are expected in the next couple of weeks.

To further encourage the private sector,the two PMs are likely to launch a CEOs forum. From the Indian side,it will be co-chaired by L&Ts chairman and managing director AM Naik. Malaysia will benefit through the Ceca given its eagerness to export more edible oil,petroleum products and electronic items to India. The two countries also have growing educational links with a large number of Malaysian students preferring to study medicine in India.

Defence relationship between the two countries received a major boost with India providing a training programme to Malaysia on Sukhoi-30s. The two have had regular exchanges in the areas of maritime security too.