India and Malaysia to Strengthen Ties in Cutting-Edge Technologies

India and Malaysia are set to enhance cooperation in semiconductor, fintech, and defence technologies following a meeting between Prime Ministers Narendra Modi and Anwar Ibrahim. This move comes as both nations aim to reset and reinvigorate relations despite past tensions, particularly around the region of Kashmir.

India and Malaysia are gearing up to boost their collaboration in cutting-edge sectors like semiconductors, financial technology, and defence production, as revealed by Prime Minister Narendra Modi on Tuesday. This development follows his meeting with Malaysian counterpart, Anwar Ibrahim, indicating a strategic reset in their bilateral relations.

The diplomatic relationship between the two countries had cooled in late 2019 after then-Malaysian Prime Minister Mahathir Mohamad criticized India's decision to revoke the autonomy of its only Muslim-majority region, Kashmir, affecting trade, including India's palm oil imports from Malaysia.

As part of the renewed cooperation, both nations will elevate their partnership to a 'Comprehensive Strategic Partnership' level, with a focus on modern technologies such as AI and quantum technology. Additionally, India is working to boost the acceptability of the rupee in international trade, especially following recent sanctions on countries relying heavily on the dollar.