India Pitches Semiconductors, Clean Energy to Malaysian Capital During Modi Visit

India is positioning itself as a destination for investment from Malaysia in semiconductors, clean energy, and digital infrastructure, following Prime Minister Modi’s meetings with Malaysian business leaders during his February 2026 visit.

India signaled a sharpened push to attract long-term Malaysian capital into its next phase of industrial and digital growth as Prime Minister Narendra Modi met with top Malaysian business leaders during his official visit to Kuala Lumpur on February 7-8, 2026.

The outreach to corporate leaders ran in parallel with the elevation of bilateral cooperation across semiconductors, renewable energy, digital payments, and advanced manufacturing, sectors that have become central to both countries’ economic strategies.

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During a closed-door interaction, Modi met senior executives from PETRONAS, Berjaya Corporation, Khazanah Nasional Berhad, and Phison Electronics, encouraging them to expand investments and joint ventures in India.

According to India’s Prime Minister’s Office (PMO), Modi highlighted reforms aimed at improving regulatory predictability, accelerating approvals, and supporting large-scale investment under India’s “Viksit Bharat” development vision. He identified infrastructure, clean energy, semiconductors, artificial intelligence, digital technology, and healthcare as priority areas for Malaysian capital.

CEO forum signals investment momentum

The business engagement followed the 10th India-Malaysia CEO Forum held in Kuala Lumpur on February 7, where corporate leaders from both countries submitted a joint outcome report to government representatives. The forum is increasingly positioned as a feeder mechanism for investment pipelines, particularly in manufacturing, energy transition, and digital infrastructure.

Malaysia’s sovereign wealth fund, Khazanah, and energy major PETRONAS already have an operational footprint in India’s renewable and green hydrogen segments through subsidiaries such as Gentari. Indian officials see further scope for Malaysian participation in large-scale solar, grid-scale storage, and clean fuel ecosystems as India accelerates toward its net-zero commitments.

Semiconductors move to the center of India-Malaysia bilateral strategy

One of the most commercially significant outcomes of the visit was an Exchange of Notes on semiconductor cooperation, formalizing government-to-government alignment in a sector where both countries are repositioning themselves within global supply chains.

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India is scaling its domestic semiconductor ecosystem through incentive programs and workforce development, while Malaysia remains a global hub for chip assembly, testing, and packaging. Officials from both sides underlined ongoing collaboration between Indian Institutes of Technology and Malaysia’s Advanced Semiconductor Academy, as well as industry-level coordination between the Indian Electronics and Semiconductor Association and the Malaysia Semiconductor Industry Association.

For executives, this suggests that India-Malaysia semiconductor cooperation is increasingly oriented toward more structured engagement, including talent development, technology collaboration, and supply chain resilience.

Digital payments and local currency trade

The visit also delivered tangible progress on financial infrastructure. India’s NPCI International Limited signed an agreement with Malaysia’s PayNet to enable cross-border digital payments, reducing transaction costs for tourists, students, and SMEs. Separately, both governments reiterated support for invoicing and settlement in local currencies, the Indian rupee and Malaysian ringgit, building on coordination between the Reserve Bank of India and Bank Negara Malaysia.

For multinational firms operating across South and Southeast Asia, these moves could lower friction in regional treasury and payments management over time.

Trade, energy, and strategic alignment

At the leadership level, prime ministers of both countries reaffirmed their commitment to the India-Malaysia Comprehensive Strategic Partnership, upgraded in 2024. They agreed to optimize existing trade frameworks, including the Malaysia–India Comprehensive Economic Cooperation Agreement and the ASEAN-India Trade in Goods Agreement, currently under review.

Bilateral trade has been recovering steadily in recent years, with energy, electronics, palm oil, pharmaceuticals, and engineering goods among the key drivers. Malaysia also reiterated its role as a reliable supplier of sustainable palm oil, while both sides agreed to pursue higher-value downstream collaboration rather than commodity-only trade.

Bottomline for businesses

For global and regional executives, the visit presents three strategic takeaways:

• Malaysia as a capital and technology partner in India’s next industrial cycle, particularly in clean energy and semiconductors.
• India’s focus on policy continuity and scale, using bilateral partnerships to de-risk supply chains and accelerate industrial capacity.
• Developments across digital payments, skills, education, and regulatory cooperation that point to a more integrated operating environment for businesses active in both markets.

With mechanisms such as the CEO Forum and sector-specific working groups in place, India–Malaysia engagement is increasingly structured around implementation, providing clearer channels for companies to pursue partnerships, investments, and operational coordination.

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