This milestone is largely attributed to Malaysia's visa-free policy effective since December last year and the introduction of a new direct flight, Minister of Tourism, Arts, and Culture, Tiong King Sing, said as quoted by Bernama.
The achievement highlights Malaysia's growing appeal as a top destination for Indian travelers, he added.
Malaysia, which was named the "Most Loved Country in Asia" in a survey conducted by the American finance website Insider Monkey in June, is one of only two Southeast Asian countries offering visa exemptions for Indian tourists, alongside Thailand.
India's Indigo Airlines recently began operating daily flights connecting Bengaluru with Kuala Lumpur and Langkawi.
As of October, Malaysia has welcomed over 20 million foreign tourists.