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India News Updated Jul 5, 2026

India’s Development Model Attracts Indonesia, Boosting Bilateral Ties

Prime Minister Narendra Modi's visit to Indonesia highlights India's growing role as a development partner. India's digital public infrastructure, including UPI and ONDC, is inspiring Indonesia's own digital initiatives like ION and Digital Nusantara. Social welfare models like the mid-day meal scheme and Jan Aushadhi are being adapted by Indonesia. The partnership is also expanding into defence manufacturing and maritime cooperation.

India's development success stories pulling Indonesia closer, giving new momentum to bilateral ties

New Delhi, July 5

India's success stories across various sectors are making Indonesia look towards it as a trusted source of technology, policy ideas and development solutions, government officials said on Sunday.

Prime Minister Narendra Modi's upcoming visit to Indonesia from July 6 to 8 comes at a time when the partnership between the two countries is moving beyond traditional cooperation.

"In India's development in several sectors, from food security and digital governance to healthcare, agriculture and defence, its successful public policy models are becoming valuable reference points for Indonesia's own development journey," Government officials said in a statement.

Among these successes, India's digital public infrastructure has also emerged as a major area of collaboration. Indonesia's Open Network (ION) is inspired by India's ONDC model and aims to create a more open and inclusive digital marketplace for more than 65 million micro, small, and medium enterprises in Indonesia and is expected to mark its first live transaction during the Summit between PM Modi-President Prabowo Subianto on July 7.

Several delegations from Indonesia have visited India to learn from India's Digital Infrastructure and social welfare schemes like the Public Distribution System (PDS), the rice fortification scheme, fertiliser subsidy reforms, AgriStack, etc.

"The proposed UPI-QRIS linkage will allow seamless cross-border payments for travellers and businesses in both countries would be transformative for Indian businesses with trade or investment exposure in Indonesia, and for the estimated 1.7 million Indian tourists who visit Bali and other Indonesian destinations each year," Government officials added.

Indonesia's Free Nutritious Meals programme has drawn inspiration from India's Mid-Day Meal (PM POSHAN) scheme. Similarly, its Red and White Village Cooperatives initiative is exploring cooperation with India for affordable medicines through the Jan Aushadhi model, helping strengthen healthcare access in rural areas.

India's digital partnership with Indonesia is now moving beyond sharing successful models to helping build the country's next-generation digital backbone. Indonesia's ambitious Digital Nusantara initiative aims to create a unified and interoperable national digital infrastructure, and Indian technology expertise is emerging as an important partner in this journey.

New Delhi's digital solutions that powered Aadhaar, UPI, DigiLocker, e-KYC and ONDC are now finding relevance in Jakarta's own digital transformation. This marks a shift from technology adoption to deeper institutional collaboration, with Indian companies contributing their experience in building secure, population-scale digital public infrastructure.

The partnership is expanding into defence as well. Indonesia is working with India on defence manufacturing, technology transfer, military training and maritime cooperation. India's experience in indigenous defence production under Atmanirbhar Bharat is creating new opportunities for long-term collaboration.

As PM Modi visits Indonesia, this growing knowledge partnership is emerging as one of the strongest pillars of bilateral ties, creating opportunities for innovation, economic growth and long-term strategic cooperation. These initiatives reflect a broader trend where India's development journey is no longer only benefiting its own citizens but is increasingly serving as a blueprint for friendly countries.

— IANS

Reader Comments

Priya S

While it's nice that Indonesia is learning from India, we need to ensure our own citizens benefit first. Our rural healthcare and education still face major challenges. The Jan Aushadhi model is good, but many poor Indians still struggle to access affordable medicines. Let's fix home before exporting solutions abroad.

Vikram M

This is what 'Vishwa Bandhu' truly means - sharing our knowledge and technology with friendly nations. The ONDC-inspired ION for Indonesia's MSMEs is brilliant! Over 65 million small businesses getting a digital boost. And the mid-day meal inspiration for their nutrition program shows our soft power is real and impactful. 🚀

Sarah B

Interesting read. I'm an American living in India for work, and it's fascinating watching India's development models gain global traction. The digital governance systems here are indeed impressive. My Indonesian colleagues at our firm often mention how India's tech infrastructure is a benchmark for them. Great time for bilateral ties!

Nisha Z

The defence cooperation part is crucial. As a citizen living near the border, I'm glad India is exporting its Atmanirbhar Bharat expertise in defence manufacturing. Indonesia is a key maritime neighbour, and deeper military ties with them strengthen our strategic position in the Indian Ocean. But let's also focus on making our own military self-reliant first!

Ramesh W

Baat toh achi hai, lekin kya sach mein hum itne aage hain? (Translation: It sounds good, but are we really this far ahead?) Our PDS system has massive leakages, and the mid-day meal scheme has quality issues. If Indonesia is learning from us, we must perfect these systems at home first.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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