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India and Malaysia Sign 11 Pacts on Defence, Semiconductors, and Counter-Terrorism During PM Modi's Visit

Target:UPSC GS-IIMPSCTeachingSSC GAPrelims HighMains HighStatic GK Link
09 Feb 2026
~2 min
Source: Indian Express
Key Data:$18.6 billion bilateral trade2.9 million Indian diaspora in Malaysia13% global semiconductor trade11 cooperation agreements
Bodies:FATFInternational Solar AllianceIndian Electronics and Semiconductor AssociationMalaysia-India Defence Cooperation Committee
Practice MCQs from today's news ▸
What This Article Covers

1.PM Modi's visit to Malaysia solidified a Comprehensive Strategic Partnership, with 11 pacts signed in defence, semiconductors, and a firm joint stance against cross-border terrorism.

2.The PMO cited Lok Sabha Rules 41(2)(viii) & (xvii) to declare questions on PM CARES, PMNRF, and NDF inadmissible, as they are funded by voluntary contributions, not the Consolidated Fund.

3.State governments are paying 0.4-0.5% higher interest on borrowings despite RBI rate cuts, due to high debt levels and tightening liquidity, illustrating limited monetary policy transmission.

The Big Picture
Prelims · HighMains · High

This compilation covers high-stakes issues for UPSC aspirants: India's strategic pivot to Malaysia with a focus on counter-terrorism and semiconductors, the legal status of PM CARES Fund making it immune to parliamentary questions, and the upcoming AI Impact Summit in India. It also explains why government borrowing costs are rising despite RBI rate cuts, a classic 'crowding out' effect crucial for the Economy syllabus.

Exam Lens

Quick Exam Facts From News

India-Malaysia Trade (2025)$18.6 Billion
Indian Diaspora in Malaysia2.9 Million (3rd largest)
PM CARES Fund Setup DateMarch 27, 2020
Andhra Pradesh Borrowing Rate (15-yr)7.66% (Feb 2026)
AI Impact Summit DatesFeb 16-20, 2026

1-Minute Revision

  • ›India-Malaysia Trade (2025): $18.6 Billion
  • ›Indian Diaspora in Malaysia: 2.9 Million (3rd largest)
  • ›Target this Data: India-Malaysia bilateral trade was $18.6 billion in 2025.
  • ›Target this Nodal Body: The Prime Minister's Office (PMO) invoked Lok Sabha Rules.
  • ›Target this Legal Point: PM CARES is registered under the Registration Act, 1908, not the Constitution.

Mastered this topic? Test your knowledge with a full MCQ quiz.

Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageEasy

The PM CARES Fund has been registered under which of the following acts?

Q2Statement-basedHard

Consider the following statements regarding the recent India-Malaysia bilateral talks:

1. Both countries agreed to establish a Strategic Affairs Working Group (SAWG).

2. A key focus was on integrating India's semiconductor manufacturing with Malaysia's design capabilities.

3. The joint statement called for zero tolerance towards terrorism, including cross-border terrorism.

Q3Data-centricMedium

As per the news, what was the approximate yield (interest rate) at which Andhra Pradesh borrowed through 15-year state government securities in February 2026?

Q4Application/ImpactMedium

The 'crowding out' effect in the context of government borrowings, as discussed in the article, primarily refers to:

All 15 MCQs ▸
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