India and Indonesia are expected to be the fastest-growing economies in the world over the next five years, according to the IMF. Both countries face similar challenges, including technological disruption and changes in the energy market. Both have popular leaders in office, are focusing on infrastructure development, and have a rapidly-growing middle class. However, their approaches to development are different. While India is focusing on developing its private sector and capital markets, Indonesia’s industrial policy is centered around natural resources. Both countries need to create more formal jobs to sustain their growth. In the last decade, India has seen its GDP rise by 71%, while Indonesia’s has grown by 52%. The share of business in the GDP is 40%, with government expenditure of 30% in India and 18% in Indonesia. While India is strong in IT services, Indonesia is focusing on commodities, including green commodities like nickel that are critical to electric batteries and grids.
