Malaysia has successfully diversified its economy from one that was initially agriculture and commodity-based, to one that now plays host to robust manufacturing and service sectors, which have propelled the country to become a leading exporter of electrical appliances, parts, and components.It is a newly industrialized market economy that is relatively open despite being state-oriented. Rebounding from the pandemic-induced economic shock, the Malaysian economy gathered momentum in 2022 as its growth rate surpassed expectations quarter after quarter. The first quarter of 2022 saw a growth rate of 5 per cent year-on-year. This was a remarkable rate compared to the 3.9 per cent that was achieved in the fourth quarter of 2021.
India’s engineering exports to Malaysia for April-November 2022-23 recorded US$ 988.9 million. India’s major engineering exports to Malaysia include Aluminium and products made of Aluminium, Products of Iron and Steel, Electric Machinery &Equipments, Industrial Machinery for dairy, agriculture, food processing, textiles, paper, chemicals, etc, Zinc & products made of Zinc & Iron & Steel. India’s exports of Machine Tools, Metalworking and Automation Technology to Malaysia for April-November 2022-23 stood at US$ 132.1 million, which is more than 6.4% growth compared to export during April-November 2022-23.
The Indian Engineering sector has witnessed a remarkable growth over the last few years driven by increased investments in infrastructure and industrial production.
Rapid growth in the metal and manufacturing industry, growing demand for aluminium and increasing growth in aviation and automobiles market are factors driving the India metal fabrication equipment market.Indian Metalworks Industry has acquired a commendable status not only in India but also in foreign countries by exporting its unique products in the local as well as in the global markets. Thus post pandemic the revival in global and ASEAN nations is expected to boost India’s engineering exports further. India having a FTA with the ASEAN will definitely have an added advantage in its exports to Malaysia over its other counterparts.