Strengthening Trade Relations: Goa and Indonesia Seek to Achieve USD 50 Billion Bilateral Trade by 2025

Erry Herjuno, Economic Counsellor at the Embassy of Indonesia in New Delhi, met with the Goa Chamber of Commerce & Industry (GCCI) to explore avenues for strengthening trade relations between Goa and Indonesia. The discussion highlighted the steady growth in bilateral trade, currently valued at around USD 30 billion, but also emphasized the significant trade imbalance favoring Indonesia. Indonesian exports to India account for approximately USD 24 billion, primarily comprising coal, iron and steel, and crude palm oil. In contrast, India's exports to Indonesia remain relatively modest, at about USD 6 billion, with a more diversified basket of products.

Key Takeaways:

• The current bilateral trade between Goa and Indonesia is valued at around USD 30 billion, with Indonesian exports accounting for approximately USD 24 billion and Indian exports amounting to about USD 6 billion.
• The trade imbalance favoring Indonesia is significant, with Indian exporters relying heavily on a limited range of products such as coal, iron and steel, and crude palm oil.
• The Indonesian delegation invited Goan exporters to participate in the 40th Trade Expo Indonesia, scheduled from October 15 to 19 in Jakarta, which generated USD 7.46 billion in business with India in the previous edition and drew over 900 Indian buyers.
• This year's spotlight sectors at the expo include logistics, paper, coal, palm oil, and iron and steel, and Indonesia is also opening new doors for collaboration in its growing IT services sector.
• A sector-specific opportunities booklet was shared with GCCI to encourage Goan businesses to explore emerging areas of engagement.
• Both sides have set an ambitious target of increasing bilateral trade to USD 50 billion by 2025, building on last year's USD 40 billion mark, which represents a 50% rise from previous levels.
• Amonkar stressed the importance of reducing the trade deficit by diversifying India's export offerings, particularly in high-growth sectors such as green energy, electric vehicles, medical devices, and pharmaceuticals.
• The potential of agricultural products such as potatoes, onions, and chillies was also highlighted as an area for growth.

Statistics:

• Current bilateral trade between Goa and Indonesia: USD 30 billion
• Indonesian exports to India: approximately USD 24 billion
• Indian exports to Indonesia: approximately USD 6 billion
• Potential market size for Goan agricultural products: awaiting details
• Previous edition of Trade Expo Indonesia generated: USD 7.46 billion in business with India
• Number of Indian buyers attending Trade Expo Indonesia: over 900
• Ambitious target for bilateral trade by 2025: USD 50 billion
• Rise in bilateral trade from previous levels: 50%

Sources:

• Published by HT Digital Content Services with permission from Herald Goa