THEBUSINESSBYTES BUREAU

NEW DELHI, JULY 7, 2026

India and Indonesia have significantly expanded the scope of their economic and strategic partnership by agreeing to deepen cooperation across critical sectors including healthcare, pharmaceuticals, food security, agriculture, fertilisers and clean energy. The two countries also signed key agreements and outlined an ambitious roadmap aimed at strengthening resilience in vital sectors during Prime Minister Narendra Modi's State Visit to Indonesia from July 6 to 8.

The broad-based commitments were announced in a joint statement issued following bilateral talks between Prime Minister Narendra Modi and Indonesian President Prabowo Subianto. Reaffirming their commitment to the India-Indonesia Comprehensive Strategic Partnership, the two leaders pledged to enhance collaboration in areas that are increasingly central to economic growth, public welfare and long-term sustainability.

A major highlight of the discussions was the decision to strengthen cooperation in the healthcare and pharmaceutical sectors. Recognising the growing demand for affordable and quality healthcare solutions, both leaders noted the strategic importance of Indonesia's Red and White Cooperative Network as a potential logistics and distribution platform for pharmaceutical products and medical supplies from both countries, subject to their respective domestic laws and regulatory frameworks.

Further advancing health sector collaboration, the two sides welcomed the signing of the Implementation Arrangement on Professional Health Workforce Development. The agreement seeks to promote fellowship programmes and specialised skill enhancement initiatives for healthcare professionals while facilitating hands-on clinical training in advanced medical fields. It also provides for the exchange of healthcare professionals, experts and best practices in medicine and health services, paving the way for stronger institutional partnerships and capacity building.

The leaders also stressed the need for closer regulatory cooperation in food safety and urged the early conclusion of a Memorandum of Understanding between Indonesia's National Agency of Drug and Food Control (BPOM) and India's Food Safety and Standards Authority of India (FSSAI). The proposed agreement is expected to strengthen regulatory coordination in processed food products, facilitate smoother trade and ensure high safety standards.

Food security and sustainable agriculture emerged as another important pillar of the bilateral agenda. Both countries agreed to intensify cooperation while respecting each other's domestic policies and priorities. They committed to expanding food and agricultural trade, promoting joint research, encouraging innovation and sharing knowledge to develop resilient and sustainable food systems capable of addressing future challenges.

The leaders also expressed optimism over the early conclusion of a Memorandum of Understanding on cooperation in agriculture and allied sectors. In addition, they looked forward to renewing the existing Memorandum of Understanding on marine and fisheries cooperation, further strengthening collaboration in sectors that support livelihoods, food production and the blue economy.

Strengthening pharmaceutical cooperation also featured prominently in the discussions. The two leaders welcomed the signing of a Memorandum of Understanding between India's Central Drugs Standard Control Organisation (CDSCO) and Indonesia's BPOM to enhance regulatory cooperation in medical products. The agreement is expected to facilitate greater regulatory harmonisation, improve market access and support the availability of safe and quality medicines in both countries.

Recognising the strategic importance of agricultural inputs, India and Indonesia also agreed to enhance cooperation in the fertiliser sector. The two sides underlined the importance of ensuring stable, affordable and reliable fertiliser supplies amid global market uncertainties and evolving supply chain challenges, acknowledging their critical role in safeguarding agricultural productivity and food security.

Energy security formed another key area of engagement, with both nations reaffirming their commitment to expanding collaboration across conventional as well as renewable energy sectors. They agreed to undertake joint studies, strengthen institutional capacity and promote technological cooperation in emerging clean energy solutions.

The leaders welcomed enhanced cooperation in liquefied natural gas (LNG), green hydrogen, bioenergy, solar energy and energy efficiency technologies, reflecting their shared commitment to accelerating the clean energy transition while strengthening long-term energy security.