PM-LD ARRIVAL 3

India and Malaysia will also announce setting up of a
CEO's Forum Wednesday and issue an outcome document having a
blueprint of steps to boost the economic ties.
While economic ties are the core of the relations, the
two Prime Ministers will also discuss ways to push the ties in
political, defence and other spheres with strategic
orientation.
There is a keen desire among business communities on
both sides to step up investments, sources said Tuesday.
In this backdrop, two major announcements regarding
investments in Malaysia are expected from the Indian side in a
couple of weeks, they said.
Malaysian infrastructure companies are also keen to
participate in development of the sector in India where about
one trillion US dollars would be required over the next seven
years.
The two sides are also vigorously working on
conclusion of a Free Trade Agreement, which is expected to be
an "enormous step" in boosting the two-way trade and
investment as it will cover goods, services and investments.
The FTA, for which seven rounds of negotiations were
held this year, will be besides the one India has signed with
the ASEAN grouping of which Malaysia is a part. That FTA,
however, covers only goods.
Defence relations have also witnessed an increase over
the last few years. As part of the programme, IAF has trained
Malaysian Air Force pilots in flying Sukhoi fighters.
Malaysia also sent a warship to participate in India's
'Milan' exercises some time back besides which ships of the
two countries regularly make calls at each other's ports. PTI