India signs clean and fair economy agreements under IPEF
ECONOMY & POLICY

India signs clean and fair economy agreements under IPEF

India has signed key agreements on the Clean Economy and Fair Economy under the Indo-Pacific Economic Framework (IPEF) on 21 September 2024, during Prime Minister Narendra Modi's visit to Delaware, USA, for the Quad Summit. The signing of these agreements is seen as a significant move towards promoting green technology, energy transition, and anti-corruption initiatives, reinforcing India's role in the economic development of the Indo-Pacific region.

The Clean Economy Agreement, part of Pillar-III of IPEF, focuses on enhancing technical cooperation, workforce development, and investment in climate-friendly technologies. It also facilitates project financing and the development of joint collaborative projects, with a particular focus on MSMEs and integrating Indian companies into global value chains. The agreement includes initiatives like the IPEF Catalytic Capital Fund and the IPEF Accelerator, aimed at supporting green energy and improving climate resilience. Meanwhile, the Fair Economy Agreement, under Pillar-IV, aims to increase transparency and predictability in trade and investment within the Indo-Pacific. Its focus includes combating corruption, improving tax transparency, and supporting asset recovery. The agreement is expected to aid India's efforts to curb money laundering and terrorism financing, while also strengthening cross-border investigations and tax administration.

A government official at the event reportedly stated that these IPEF agreements would drive investment in clean technologies and bolster India's efforts in combating corruption and ensuring transparency in the Indo-Pacific region.

Additionally, an overarching IPEF Agreement was signed to establish a high-level ministerial oversight framework, guiding the implementation of the IPEF agreements and fostering long-term cooperation. This agreement aligns with India's Atmanirbhar Bharat vision by strengthening productive capacity, integrating supply chains, and promoting innovation.

Earlier in 2024, India had ratified the Supply Chain Resilience Agreement under Pillar-II, and with the signing of the Clean and Fair Economy agreements, the country is now fully engaged with IPEF's economic pillars, while maintaining observer status in the Trade Agreement (Pillar-I).

The Clean Economy Agreement is expected to boost investment through platforms such as the IPEF Catalytic Capital Fund, which has received an initial contribution of USD 33 million from Australia, Japan, Korea, and the USA. Additionally, the PGI Investment Accelerator has secured USD 300 million from the US International Development Finance Corporation (DFC) to support energy transition and climate investments.

India's involvement in IPEF, which was launched in May 2022, aims to promote economic cooperation and stability across 14 countries in the Indo-Pacific, with a strong focus on advancing growth and prosperity.

India has signed key agreements on the Clean Economy and Fair Economy under the Indo-Pacific Economic Framework (IPEF) on 21 September 2024, during Prime Minister Narendra Modi's visit to Delaware, USA, for the Quad Summit. The signing of these agreements is seen as a significant move towards promoting green technology, energy transition, and anti-corruption initiatives, reinforcing India's role in the economic development of the Indo-Pacific region. The Clean Economy Agreement, part of Pillar-III of IPEF, focuses on enhancing technical cooperation, workforce development, and investment in climate-friendly technologies. It also facilitates project financing and the development of joint collaborative projects, with a particular focus on MSMEs and integrating Indian companies into global value chains. The agreement includes initiatives like the IPEF Catalytic Capital Fund and the IPEF Accelerator, aimed at supporting green energy and improving climate resilience. Meanwhile, the Fair Economy Agreement, under Pillar-IV, aims to increase transparency and predictability in trade and investment within the Indo-Pacific. Its focus includes combating corruption, improving tax transparency, and supporting asset recovery. The agreement is expected to aid India's efforts to curb money laundering and terrorism financing, while also strengthening cross-border investigations and tax administration. A government official at the event reportedly stated that these IPEF agreements would drive investment in clean technologies and bolster India's efforts in combating corruption and ensuring transparency in the Indo-Pacific region. Additionally, an overarching IPEF Agreement was signed to establish a high-level ministerial oversight framework, guiding the implementation of the IPEF agreements and fostering long-term cooperation. This agreement aligns with India's Atmanirbhar Bharat vision by strengthening productive capacity, integrating supply chains, and promoting innovation. Earlier in 2024, India had ratified the Supply Chain Resilience Agreement under Pillar-II, and with the signing of the Clean and Fair Economy agreements, the country is now fully engaged with IPEF's economic pillars, while maintaining observer status in the Trade Agreement (Pillar-I). The Clean Economy Agreement is expected to boost investment through platforms such as the IPEF Catalytic Capital Fund, which has received an initial contribution of USD 33 million from Australia, Japan, Korea, and the USA. Additionally, the PGI Investment Accelerator has secured USD 300 million from the US International Development Finance Corporation (DFC) to support energy transition and climate investments. India's involvement in IPEF, which was launched in May 2022, aims to promote economic cooperation and stability across 14 countries in the Indo-Pacific, with a strong focus on advancing growth and prosperity.

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