THE Malaysia India Comprehensive Economic Cooperation Agreement (MICECA), the two countries' bilateral free trade pact, will unleash business opportunities especially in the small and medium enterprises (SME) sector, said the Consortium of Indian Industries in Malaysia (CIIM).

"While it is important to look at big companies and projects, the full engagement between the business communities in India and Malaysia will come with the engagement of the SME sector," CIIM chairman Umang Sharma said.

The MICECA was signed by International Trade and Industry Minister Datuk Seri Mustapa Mohamed and his Indian counterpart, Commerce Minister Anand Sharma, in Putrajaya last Friday.

"We believe SME sector is the engine of growth. More than 25 per cent of the workforce in India is employed by the SME sector which in turn contributes more than 50 per cent of the total GDP (gross domestic product).

"There is a lot of SME engagement potential in the second-tier cities in India in the high-tech industry and services sectors, both sectors which Malaysia is keen to develop," Sharma said.

CIIM is planning to organise a conference for the Malaysian business community on April 28, themed "CECA-Unleashing Business Opportunities".