MARCH 20258INDIA, MALAYSIA STRENGTHEN TIES IN SEMICONDUCTORS AND MANUFACTURING STANDARDSFORD TO REVIVE CHENNAI FACILITY FOR ENGINE MANUFACTURING AND EXPORTS Union Minister of State for Commerce and Industry, as well as Electronics and Information Technology, Jitin Prasada, conducted a bilateral meeting today in New Delhi with Liew Chin Tong, the Deputy Minister of Investment, Trade, and Industry of Malaysia. The discussions focused on various topics, including bilateral trade, According to people familiar with the matter, US manufacturer Ford plans to convert its idle Chennai plant into a facility for producing and exporting market access, Business operations and collaboration in the semiconductor sector, cooperation in services, and matters concerning the Foreign Manufacturers Certification Scheme (FMCS) overseen by the Bureau of Indian Standards (BIS).The meeting included representatives from Indian ministries such as External Affairs, Commerce and Industry, Electronics and Information Technology, as well as officials from Malaysia's Ministry of Investment, Trade, and Industry. Malaysia ranks as India's third largest trading partner within the ASEAN (Association of Southeast Asian Nations), with total trade reaching $20.02 billion in the fiscal year 2023-24, which constitutes approximately 17% of India's overall trade with the bloc.In addition to exploring solutions for outstanding matters and enhancing bilateral trade, both nations addressed the current evaluation of the ASEAN India Trade in Goods Agreement (AITIGA). They reached a consensus to expedite the AITIGA review, aiming for its completion by 2025. Malaysia will hold the position of ASEAN Chair in that year. The trading bloc includes Brunei, Cambodia, Indonesia, Laos, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. engines. Although it excludes the manufacture of automobiles in India, this action represents a major shift in Ford's global supply chain strategy.In 2021, the business stopped making cars in India, and in 2022, it left the market. Since the middle of 2022, its facility in Maraimalai Nagar, close to Chennai, has not been in use. But according to government insiders, high-level talks between Ford's senior executives and the Tamil Nadu government have reiterated the carmaker's dedication to India."Senior executives at Ford have had high-level discussions with the Tamil Nadu government recently where they reiterated their commitment to India," said another source, verifying that the plant would produce engines.As demonstrated by its activities in Sanand, Gujarat, Ford has an export-driven business model that is consistent with this initiative. Ford has since turned its attention to export-oriented production, notwithstanding its earlier exploration of introducing electric vehicles in India. This strategic move highlights Ford's sustained participation in the Indian industrial environment, and formal announcements are anticipated soon. TOP STORIES
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