India and IPEF Partners Discuss Rollout of Clean and Fair Economy Pact
Introduction
India, along with 13 other partners under the Indo-Pacific Economic Framework (IPEF), is set to embark on a transformative journey towards creating a "clean" and "fair" economy. In a virtual ministerial meeting, Union Commerce and Industry Minister Piyush Goyal emphasized India’s commitment to regional collaboration through these pacts. The Clean Economy Agreement, Fair Economy Agreement, and the overarching IPEF agreement will take effect in October 2024, marking a significant milestone in economic diplomacy across the Indo-Pacific.
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Strengthening Economic Cooperation
The Indo-Pacific Economic Framework was launched in Tokyo on May 23, 2022, by the US and several Indo-Pacific countries to promote a stable and prosperous regional economy. As of July 2024, India holds the prestigious position of vice chair in the IPEF Supply Chain Council, underscoring the country’s pivotal role in driving regional economic policy.
Building Resilient Supply Chains
One of the central themes of the IPEF ministerial meeting was enhancing supply chain resilience. Minister Goyal highlighted the importance of addressing pandemic-related supply chain disruptions, specifically in critical sectors such as semiconductors, battery minerals, chemicals, and agrochemicals.
Promoting a Clean Economy
India, under the IPEF Clean Economy Agreement, is committed to advancing its sustainability efforts by promoting clean energy initiatives. This agreement aligns with the country's long-term goals of transitioning to renewable energy sources and reducing its carbon footprint. With global focus on climate change intensifying, India's active participation in this pillar of the IPEF signals its dedication to achieving a greener future.
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India’s Strategic Role in the IPEF
India’s role within the IPEF, particularly as a vice chair of the Supply Chain Council, is strategic. The framework itself encompasses 14 nations, including regional heavyweights such as Japan, Korea, Australia, and Southeast Asian nations like Indonesia and Vietnam. Together, these economies represent a combined GDP of over $30 trillion, accounting for 40% of global trade.
Outlook: A Collaborative and Sustainable Future
The Indo-Pacific Economic Framework, with its ambitious pillars focusing on trade, clean energy, and fair governance, represents a future-oriented approach to economic collaboration. For India, this partnership provides a platform to deepen its relationships with Indo-Pacific nations while strengthening its internal infrastructure for resilient supply chains and clean energy.
As the agreements are rolled out in October 2024, India's proactive engagement with its IPEF partners is expected to contribute significantly to the region's collective prosperity, setting a precedent for sustainable economic growth and fair governance across the Indo-Pacific.
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