He is a member and served as the 8th President of the Malaysian Indian Congress (MIC), a component party of the ruling Barisan Nasional (BN) coalition, from December 2010 to June 2013.
In the same year as his graduation, he was elected Secretary of Petaling Branch of Malaysian Indian Congress (MIC), a political party which is part of the ruling coalition.
Palanivel also had a stint in the corporate circle as a business adviser to Sports Toto and as one of the member of the board of directors of Telekom Malaysia.
Although the Barisan Nasional coalition won the 2008 general elections, it lost its previous eminent of position of securing parliamentary seats exceeding two-thirds majority.
In the same elections, serious gains including capturing of five states out the total of thirteen have been made by the alternative coalition, Pakatan Rakyat.
On 6 December 2010, Palanivel was appointed as the 8th MIC President succeeding Samy Vellu who had held the post for 31 years.
On 5 July 2013, Palanivel commented "It was a fair move taking into consideration the sensitivities of various stakeholders and groups.