19/03/2013 (Bernama) - India-Malaysia trade hit a record high of RM41.2 billion in 2012, a 7.3 per cent growth over 2011, despite a slowdown in India's economic growth.

"The all-time high levels were recorded in both imports and exports in 2012.

Malaysia's exports to India amounted to RM29.3 billion, posting a 4.2 per cent growth over 2011, while imports from India touched RM11.8 billion, up 15.9 per cent over 2011," said Noraslan Hadi Abdul Kadir, the Mumbai-based Malaysian trade commissioner in India, in an interview with Bernama.

The first-ever Malaysian trade commissioner in Mumbai since the Malaysia External Trade Corp (MATRADE) opened its first office in Mumbai, he has built up a large contact base amongst local industry and trade associations as well as the business community, according to Indian sources.

"Imports from India into Malaysia have surged, thereby reducing India's trade deficit.

"The rise in bilateral trade is also due to the free trade agreement signed between India and Malaysia, which has reduced many trade barriers," he added.

However, many Indian companies are not aware of the existence of the FTA which could open up greater opportunities for Indian exporters.

India is Malaysia's 11th top trading partner in the world, an improvement from the 12th ranking in 2011.

Malaysia's main export item to India continues to be palm oil (25.2 per cent), followed by electronic and electrical products (19.4 per cent), crude petroleum (17.4 per cent), chemicals and chemical-based products (10.6 per cent) and transport equipment (4.8 per cent).

Indian exports to Malaysia comprised refined petroleum products (18 per cent), chemicals and chemical products (16.3 per cent), live animals and meat (8.9 per cent), cereals (6 per cent) and electrical and electronic products (5.2 per cent).

On outlook, he said even if growth is not double-digit but continues in a steady and consistent manner, "that in itself is a good sign."

He said exports of agro-based products from India have good potential, but "big-ticket items" such as infrastructure development projects involving ports, airports and power supply, in which Malaysia can play a big role, could provide a strong boost to trade.

The information technology sector also offers both Indian and Malaysian companies opportunities to team up in partnership in third countries. Malaysian companies, with their strength in automobile spare parts manufacturing, could create joint ventures with manufacturing operations in this sector in India, rather than engaging in mere shipping, which is not cost-effective, he said.

He also urged Malaysian companies to pro-actively pursue business in India by visiting their Indian counterparts instead of just doing desk research, saying "the right way to know your partners and market is to visit the country and hold personal meetings."

Meanwhile, the Malaysian Rubber Export Promotion Council (MREPC) will be organising a one-day seminar on all aspects of rubber production in Mumbai and Delhi in September 2013.

Ten Indian companies are expected to attend Malaysia's halal exhibition MIHAS in Kuala Lumpur in April to source from Malaysia, while in November, Indian exhibitors will be participating in the general exhibition in Kuala Lumpur called Intrade.