India – Indonesia Economic and Financial Dialogue (EFD Dialogue)

July 17, 2023

The recently launched India – Indonesia Economic and Financial Dialogue (EFD) marks a significant step towards strengthening cooperation and fostering a shared understanding on global issues between the two nations. Unveiled during the G20 Finance Ministers and Central Bank Governors (FMCBG) meeting, this platform offers a unique opportunity for India and Indonesia to collaborate on economic and financial matters.

Enhancing Bilateral Relations

India’s Look East Policy, introduced in 1991, and subsequent Act East Policy have played pivotal roles in facilitating the rapid development of bilateral relations between India and Indonesia. In the ASEAN region, Indonesia has become India’s primary trading partner, experiencing a remarkable eightfold surge in trade since 2005. The trade volume has reached an impressive $38 billion in the fiscal year 2022-23.

Objectives of the Dialogue

The primary purpose of the India – Indonesia Economic and Financial Dialogue is to strengthen cooperation and collaboration between the two nations. By bringing together economic policymakers and financial regulators from both countries, the dialogue aims to address macroeconomic challenges, assess global economic prospects, promote bilateral investment relations, and facilitate cooperation on G20 and ASEAN matters. The dialogue also recognizes the potential of the digital economy and highlights the scope for collaboration in the field of fintech for financial inclusion.

Expected Outcomes

The EFD Dialogue is expected to enhance collaboration on various economic and financial matters of mutual interest. By exchanging knowledge, best practices, and policy insights, both countries can benefit from each other’s experiences. The dialogue provides a platform for India and Indonesia, as fast-growing economies actively engaged in multilateral organizations such as G20, WTO, and East Asia Summit, to learn from one another and coordinate their policies effectively.

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