Defence Ties To Further Boost Trade Volumes Increased 7 Fold Between India & Indonesia Since 2004-05

New Delhi, Jan 27 (KNN) India and Indonesia have embarked on a significant expansion of their bilateral relationship, announcing comprehensive measures to strengthen defence cooperation and economic ties during Indonesian President Prabowo Subianto's state visit to India as the chief guest at the 76th Republic Day celebrations.

The defence collaboration between the two nations has taken centre stage, with Indonesia expressing interest in India's defence manufacturing capabilities.

Notably, negotiations are underway for Indonesia's acquisition of the BrahMos missile system, with a preliminary agreement on pricing reaching approximately USD 450 million.

Both nations have committed to deepening their defence industry collaboration through the joint defence cooperation committee (JDCC).

Trade relations between the two countries have shown remarkable growth, with bilateral trade increasing substantially from USD 4.3 billion in 2005-06 to USD 29.40 billion in 2023-24.

Indonesia maintains its position as India's second-largest trading partner within ASEAN, with India being Indonesia's second-biggest coal buyer and largest crude palm oil purchaser.

The trade relationship encompasses various sectors, including refined petroleum products, commercial vehicles, telecommunication equipment, and agricultural commodities.

Both nations have agreed to expedite the review of the ASEAN-India Trade in Goods Agreement (AITIGA) this year to maximise economic potential.

The leaders have called for the second meeting of the working group on trade and investment and the fourth biennial trade ministers' forum to address trade barriers. This aligns with the broader India-ASEAN trade relationship, which has doubled to USD 130 billion over the past decade.

In matters of regional security, both countries emphasised the importance of maintaining peace, stability, and freedom of navigation in the Indo-Pacific region.

They expressed support for the Declaration on the Conduct of the Parties in the South China Sea and advocated for an effective Code of Conduct that adheres to international law, including the 1982 UN Convention on the Law of the Sea.

The partnership extends beyond defence and trade to encompass various sectors including counter-terrorism, digital infrastructure, renewable energy, and critical minerals exploration.

Both nations have signed a memorandum of understanding on digital development cooperation, focusing on emerging technologies and cybersecurity.

The leaders also expressed their commitment to combating terrorism and eliminating terror financing through bilateral and multilateral initiatives.

This state visit, coinciding with the 75th anniversary of India-Indonesia diplomatic relations, marks a significant milestone in strengthening the partnership between these two prominent Asian nations, setting a foundation for enhanced cooperation across multiple domains.

(KNN Bureau)