India and Indonesia Strengthen Ties Ahead of PM Modi's Visit to Jakarta
India, Indonesia ministers hold talks ahead of PM's Jakarta visit

Image: Business Standard
Ahead of Prime Minister Narendra Modi's upcoming visit to Jakarta, External Affairs Minister S Jaishankar and Indonesian Minister Sugiono discussed enhancing cooperation in various sectors. Key areas include defense, maritime trade, and addressing trade imbalances, as Indonesia is India's second-largest trading partner in ASEAN.
- 01India and Indonesia's bilateral trade surged from $4.3 billion in 2005-06 to $38.84 billion in 2022-23.
- 02The trade deficit with Indonesia is substantial, prompting a review of the ASEAN-India Trade in Goods Agreement (AITIGA).
- 03India is the largest buyer of crude palm oil and the second-largest buyer of coal from Indonesia.
- 04Both nations are negotiating a BrahMos cruise missile deal, which is reportedly nearing completion.
- 05Sugiono's visit to New Delhi is part of ongoing diplomatic engagements, including Modi's planned visit to Indonesia next month.
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As Prime Minister Narendra Modi prepares for his visit to Jakarta next month, India's External Affairs Minister S Jaishankar met with his Indonesian counterpart, Sugiono, in New Delhi to discuss enhancing bilateral cooperation across several sectors. The talks focused on defense, maritime trade, investments, pharmaceuticals, and food security. Indonesia has become India's second-largest trading partner in the ASEAN (Association of Southeast Asian Nations) region, with bilateral trade growing significantly from $4.3 billion in 2005-06 to $38.84 billion in 2022-23. However, India faces a considerable trade deficit with Indonesia, which it aims to mitigate by reviewing the ASEAN-India Trade in Goods Agreement (AITIGA) to improve market access and balance trade. India is a major importer of coal and crude palm oil from Indonesia, as well as other commodities like rubber and minerals. The two nations are also in the final stages of negotiating a BrahMos cruise missile deal. Sugiono's visit is part of a broader diplomatic initiative, with Modi also set to visit New Zealand and Australia soon.
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The discussions aim to enhance trade relations and address the trade deficit, which could lead to improved market access for Indian goods in Indonesia.
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