Starting Friday India's exports of basmati rice, motorcycles and cotton garments will get greater market access in Malaysia.
In addition Indian professionals including chartered accountants, architects and medical practitioners will be able to provide their service in that country more freely on a temporary basis.
This follows the India-Malaysia Comprehensive Economic Cooperation Agreement (CECA) becoming operational from July 1. The Agreement liberalises trade in goods, services, investments and other areas of economic cooperation. It aims to boost bilateral trade to $15 billion by 2015 from the current level of $10 billion, the Ministry of External Affairs said in a statement.
The items on which India has obtained market access from Malaysia, under the pact, include basmati rice, mangoes, eggs, trucks, motorcycles and cotton garments. These are all items of considerable export interest to India. At the same time, adequate protection has been provided by the Indian side for sensitive sectors such as agriculture, fisheries, textiles, chemicals and auto among others.
India and Malaysia, under the services chapter of the pact, have provided commercially meaningful commitments in sectors and modes of interest to each other which should result in enhanced services trade, the statement adds.
The CECA also facilitates the temporary movement of business people including contractual service suppliers, and independent professionals in commercially meaningful sectors including accounting and auditing.
Besides, architecture, urban planning, engineering services, medical and dental, nursing and pharmacy, Computer and Related Services (CRS) and Management Consulting Services could also benefit.
The India-Malaysia CECA also facilitates cross-border investments between the two countries. It aims to promote investments and create a liberal, facilitative, transparent and competitive investment regime.
The CECA creates an attractive operating environment for the business communities of both countries to increase bilateral trade and investment.
The trade in goods package under India-Malaysia CECA takes the tariff liberalisation beyond the India-Asean Free Trade Agreement commitments, which were implemented by both countries at the beginning of 2010.