Why in the News?
India and Malaysia signed multiple agreements to expand bilateral cooperation in trade, defence, energy, semiconductors, digital technologies, and local currency trade settlement during the visit of the Indian Prime Minister to Malaysia.
Key Agreements and Outcomes
- 11 agreements and MoUs signed covering trade, defence, energy, advanced manufacturing, and semiconductors
- Framework pact for semiconductor cooperation, including supply chains and manufacturing ecosystems
- Agreement to promote local currency trade settlement using Indian Rupee and Malaysian Ringgit
- Expansion of cooperation in counter-terrorism, intelligence sharing, and maritime security
- Decision to establish an Indian Consulate General in Malaysia
- Malaysia reiterated support for India’s permanent membership in a reformed UNSC
Strategic and Economic Significance
Indo-Pacific and ASEAN
- Reinforces India’s Indo-Pacific vision
- Emphasises ASEAN centrality, especially the role of ASEAN
Trade and Economy
- Local currency settlement reduces dependence on US dollar
- Supports India’s push for internationalisation of the Rupee
- Boosts trade resilience amid global financial volatility
Technology and Energy
- Semiconductor cooperation supports India’s electronics manufacturing goals
- Energy collaboration aligns with clean energy transition and energy security
Defence and Security Dimension
- Strengthening defence ties in the maritime domain
- Cooperation in counter-terrorism with emphasis on zero tolerance and no double standards
- Enhances stability in the Indo-Pacific sea lanes
| [2011] With reference to “Look East Policy” of India, consider the following statements:
1. India wants to establish itself as an important regional player in East Asian affairs. 2. India wants to plug the vacuum created by the termination of the Cold War. 3. India wants to restore the historical and cultural ties with its neighbours in Southeast and East Asia. Which of the statements given above is/are correct? (a) 1 only (b) 1 and 3 only (c) 3 only (d) 1, 2 and 3 |
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