India and Indonesia: Trade and Investment Complementarities
India and Indonesia are increasingly seen as emerging Asian economies, and have undergone massive economic reforms in the past two decades. Strong economic fundamentals with a robust financial sector and manufacturing industry have positioned them among the top five investment destinations in Asia. In order to maximise the gains from their bilateral relations, however, the two countries have to tread a middle path; a mix of seeking complementarities in the economic field, while competing with each other in terms of attracting foreign investments. So far, their trade ties have not realised their true potential but there still is a hope that with the signing of the CECA, India and Indonesia will not only achieve the $20 billion bilateral trade target by 2015, but will also set new benchmarks for a symbiotic economic relationship.
