India signs economic deals with Malaysia<\/p>\n
PUTRAJAYA, Malaysia (Reuters): Indian Prime Minister Atal
\nBehari Vajpayee signed a raft of bilateral economic agreements on
\nMonday at the start of a three-day visit to Malaysia.<\/p>\n
Vajpayee, who arrived on Sunday with Information Technology
\nMinister Pramod Mahajan and a 75-member business delegation, also
\nheld talks with Prime Minister Mahathir Mohamad.<\/p>\n
The leader of the world's largest democracy, Vajpayee was
\nearlier officially welcomed by Mahathir, Asia's longest-serving
\nelected leader, at the new administrative capital of Putrajaya on
\nthe outskirts of Kuala Lumpur.<\/p>\n
India and Malaysia signed one deal where New Delhi would
\naccept palm oil as payment for carrying out a $1.5 billion
\nrailway project in Malaysia.<\/p>\n
\"The overall value of this project is expected to be over $1.5
\nbillion, the largest ever to be awarded to an Indian company
\nabroad,\" according to a summary of accords signed between the two
\ncountries.<\/p>\n
Malaysia, the world's top palm oil producer, offered New Delhi
\na contract involving dual tracking and electrification of rail
\nlines from northern Ipoh city to Padang Besar at the border with
\nThailand. This was in return for more palm oil purchases by
\nIndia, the world's largest edible oil importer.<\/p>\n
The two countries also signed a deal allowing Malaysian firms
\nto invest, construct and manage sea ports in India, and another
\nwaiving visa requirements for their diplomats and government
\nofficials.<\/p>\n
India, emerging as a global software power, will also be
\nlooking to take advantage of Malaysia's infrastructure facilities
\nin its high-tech Multimedia Super Corridor, industry leaders
\nsaid.<\/p>\n
\"I think bilateral relations are at a stage of take-off.
\nEconomic reforms in India have opened up new avenues for
\ninvestment,\" Indian High Commissioner to Malaysia Veena Sikri
\ntold Reuters ahead of the visit.<\/p>\n
Analysts say India is keen to woo foreign investment, more of
\nwhich has traditionally flowed to neighboring China and other
\neast Asian countries.<\/p>\n
Malaysian Foreign Minister Syed Hamid Albar said India was
\nfirm on its commitment to consider a cut in palm oil import
\nduties.<\/p>\n
\"I think the Indian government has given a positive answer
\nthat they'll look into the import duties, with the possibility of
\nreducing the import duties based on whatever constraints they
\nface,\" Syed Hamid told reporters after talks between the Indian
\nand Malaysian delegations.<\/p>\n
India ruled out a cut in palm oil duties just last Friday,
\ndashing hopes of traders in Malaysia and Indonesia, the world's
\nbiggest producers.<\/p>\n
In February, India slapped its heaviest-ever import duty of 75
\npercent on crude palm oil and 85 percent on refined palm oil.<\/p>\n
Vajpayee, who underwent knee surgery in October, did not
\ninspect the guard of honor at the welcoming ceremony, but he
\ngreeted dignitaries and posed for a group photograph with
\nMahathir.<\/p>\n
Both leaders stood for their countries' national anthems by
\nthe Royal Malaysian Navy band in bright sunshine outside
\nMahathir's Putrajaya office.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/india-signs-economic-deals-with-malaysia-1447893297",
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