Updated on 18 October, 2019
India is weighing a range of diplomatic option against Malaysia, including on the trade front. Background of the decision to retaliate:
- The above movie is to convey India’s retaliation to send a stern message to Kuala Lumpur over Kasmir's remarks.
- Over President Mahathir bin Mohamad’s tirade against India’s Kashmir policy at the UN General Assembly last month.
- India is also concerned about the Zakir Naik extradition issue on which India feels Malaysia has not done enough.
What range of diplomatic options India can exercise against Malaysia?
- As the world’s largest palmolein importer, India can shift its Palmolein import from Malaysia to Indonesia.
- India's retaliatory measures will include levying higher import taxes on Malaysian Imports.
The implication of India’s diplomatic options:
- India’s move would hurt Malaysian farmers who have changed their regular cropping patterns to cater to the Indian market.
- Indian traders have already reduced the imports of Malaysian palmolein.
About India – Malaysia Economic ties:
- India’s FTA with ASEAN and the Comprehensive Economic Cooperation Agreement has worked in Malaysia’s favor.
- Indian imports from Malaysia in 2018-19 were $10.81 billion, which is $4billion more than Indian exports.
Why India seems disappointed with Malaysia’s tirade against India’s Kashmir move?
- India has gone the extra mile to deepen its ties with Malaysia.
- Former Prime Minister Manmohan Singh signed a strategic partnership with Malaysia in 2010.
- PM Narendra Modi converted into an ‘Enhanced Strategic Partnership’ in 2015.
- To ensure the continuity, Modi also took a detour to drop by in Malaysia on May 31.