BOLSTERING INDIA-INDONESIA TRADE LINKS THROUGH THE ANDAMAN-ACEH CORRIDOR

Enjoying two millennia of shared cultural and commercial contacts, India and Indonesia share a bond like none other.

- Sagnik Sarkar

Introduction: India-Indonesia Relations

Enjoying two millennia of shared cultural and commercial contacts, India and Indonesia share a bond like none other.

Located in the littoral of the Bay of Bengal, these two nations have been civilisational partners since times immemorial.

A unifying factor in the bilateral ties is the shared culture, colonial history, and post-independence ideals of political autonomy, economic self-sufficiency, and autonomous foreign policy. The two nations commemorated 70 years of thriving and effective diplomatic relations in 2019. A key tenet of India's Indo Pacific strategy, the Indo-Indonesia cooperation has a significant role to play in achieving the shared goal of a secure and prosperous Bay of Bengal area.

Economically, the two nations are significantly progressing forward with their ties. In the ASEAN area, Indonesia has overtaken. Bangladesh to rank as India's second-largest commercial partner. From US$ 6.9 billion in 2007-2008 to US$ 19.03 billion in 2014-2015, there has been a rise in bilateral trade. India imports coal, minerals, rubber, pulp and paper, hydrocarbons, and is Indonesia's biggest consumer of crude palm oil. India exports to Indonesia steel products, plastics, cotton, maize, commercial cars, telecommunications equipment, oil seeds, and animal feed. India also sends formulations and large quantities of medications to Indonesia¹.

Andaman-Aceh: Proximity and Potential In order to take steps forward to bolster trade ties further, it is important for both these nations to harness their shared maritime border through the Andaman and Nicobar Islands of India and the Aceh province of Indonesia through the Andaman sea. The largest city and capital of the Aceh province of Indonesia, Banda Aceh, is situated near the southernmost point of Sumatra.