India and Indonesia Forge Economic Partnership Through EFD Dialogue: Strengthening Bilateral Cooperation for Global Prosperity
Ms. Sri MulyaniIndrawati, the Minister of Finance in Indonesia, and Smt. Nirmala Sitharaman, the Union Minister for Finance and Corporate Affairs in India, have jointly announced the launch of the “India – Indonesia Economic and Financial Dialogue.” This platform was unveiled during the G20 Finance Ministers and Central Bank Governors meeting and aims to strengthen cooperation between the two nations while fostering a shared understanding of global issues.
In her statement, Union Finance Minister Smt. Sitharaman highlighted the evolution of India’s foreign policy, from the “Look East Policy” in 1991 to the “Act East Policy,” which has facilitated the rapid development of bilateral relations, particularly in the commercial and cultural fields. She emphasized that Indonesia has emerged as India’s largest trading partner in the ASEAN region, with trade between the two countries increasing eightfold since 2005 and reaching an impressive $38 billion in the fiscal year 2022-23.
The India – Indonesia Economic and Financial Dialogue (EFD Dialogue) aims to enhance collaboration on bilateral and international economic and financial matters. By bringing together economic policymakers and financial regulators from both countries, the dialogue seeks to address various areas of cooperation, including macroeconomic challenges, global economic prospects, bilateral investment relations, and cooperation in G20 and ASEAN matters. The Finance Ministers also acknowledged the potential for collaboration in the field of fintech for financial inclusion, given the growing importance of the digital economy.
India and Indonesia, both fast-growing economies, play active roles in multilateral organizations such as the G-20, WTO, and East Asia Summit. The similarities between the two nations create a unique opportunity for mutual learning and policy coordination through this dialogue. By leveraging their collective strengths and experiences, India and Indonesia can contribute not only to deepening their bilateral relationship but also to the economic and financial stability of Southeast Asia and the world.
Both Finance Ministers expressed optimism about the impact of the EFD Dialogue. They believe that this platform will not only strengthen the relationship between India and Indonesia but also have wider positive implications for the economic and financial stability of Southeast Asia and beyond. The dialogue will serve as a means for both countries to engage in meaningful discussions, exchange ideas, and develop coordinated policies that can address common challenges and promote sustainable growth.
The launch of the India – Indonesia Economic and Financial Dialogue marks an important milestone in the bilateral relationship between these two nations. By fostering collaboration and understanding on economic and financial matters, the dialogue has the potential to further enhance trade, investment, and cooperation between India and Indonesia. This initiative not only benefits the two countries directly but also contributes to regional and global economic stability. Through continued engagement and coordination, India and Indonesia can leverage their shared experiences and strengths to navigate the evolving economic landscape and drive sustainable growth in the years to come.
News Mania Desk/Agnibeena Ghosh , 18 July 2023
