Indo-Pacific Economic Framework for Prosperity (IPEF)

India recently signed the US-led 14-member Indo-Pacific Economic Framework for Prosperity (IPEF) bloc’s agreements on a clean and fair economy. 

About Indo-Pacific Economic Framework for Prosperity (IPEF)

• The Indo-Pacific Economic Framework (IPEF) was launched in May 2022 in Tokyo, Japan
• Objective: Enhance economic engagement and cooperation among partner countries to foster growth, economic stability, and regional prosperity.
• Member Countries: 14 members including Australia, Brunei, Fiji, India, Indonesia, Japan, Republic of Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, USA, and Vietnam.
  • These 14 partners represent 40% of global GDP and 28% of global goods and services trade.

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IPEF Pillars

• Fair and Resilient Trade (Pillar I):
  • Aims to promote regional economic growth, peace, and prosperity.
  • Focus on transparent trade practices and addressing issues like labor rights, environmental sustainability, and digital governance.
  • India’s Status: Observer.
• Supply Chain Resilience (Pillar II):
  • Seeks to make supply chains more resilient, robust, and well-integrated.
  • Focus on logistics improvements, connectivity, and critical sectors.
  • Includes initiatives to upskill and reskill workers in these areas.
  • India’s Status: Active participant.
• Clean Economy (Pillar III):
  • Aims to promote renewable energy and climate-friendly technologies.
  • Focus on research, development, commercialization, and deployment of clean energy solutions.
  • Encourages investment in climate-related projects in the Indo-Pacific region.
  • India’s Status: Active participant.
• Fair Economy (Pillar IV):
  • Implements anti-corruption measures and tax policies.
  • Focus on creating transparent and fair tax systems, strengthening anti-corruption laws.
  • India’s Status: Active participant.

India’s Position in IPEF

• Pillars Participation: India has joined Pillars II, III, and IV but holds observer status in Pillar I.
• Concerns:
  • India has not committed to joining the negotiations on Pillar I due to potential discriminatory conditions, particularly in areas of digital governance and environmental standards.
  • Digital governance in the IPEF framework does not align with India’s existing digital policies.
  • India has its own digital framework focusing on data protection and privacy.

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