RBI gives nod to India-Malaysia rupee trade; to boost exports

This RBI initiative aims to foster trade growth and support the interests of the global trading community by facilitating transactions in Indian rupee, MEA said in a statement. 

The textile trade between the two countries nearly doubled in 2022 and the recent decision can be expected to further boost the bilateral trade. India's apparel exports to Malaysia reached $147.628 million in 2022 from $82.538 million in 2021. Outbound shipments stood at $80.282 million in 2020, $96.936 million in 2019, $82.516 million in 2018, and $93.511 million in 2017, according to Fibre2Fashion’s market insight tool TexPro. 

India's apparel imports from Malaysia were significantly lower than the exports, but they increased from $2.394 million in 2021 to $31.477 million in 2022. Inbound shipments stood at $2.448 million in 2020, $4.463 million in 2019, $5.368 million in 2018, and $2.761 million in 2017. 

India's fibre exports to Malaysia fell sharply in previous years. Exports came down to $0.903 million in 2022 from $3.207 million in 2021. They peaked at $96.899 million in 2018 from $15.659 million in 2017, but trade slipped to $15.199 million in 2019 and $1.387 million in 2020. The import of fibre stood at $8.163 million in 2022 and $9.140 million in 2021, according to TexPro. 

India imported fabric worth $22.856 million in 2022 and $13.961 million in 2021 from Malaysia. Its export of fibre stood at $50.805 million in 2022 and $32.159 million in 2021. India's yarn exports to Malaysia were higher than the imports, with outbound shipments at $15.470 million in 2022 and $37.197 million in 2021, while India's imports of yarn from Malaysia stood at $6.004 million in 2022 and $5.311 million in 2021. 

Fibre2Fashion News Desk (KUL)