Union Cabinet Greenlights India's IPEF Agreements

05 Sep 2024 CW Team

The Union Cabinet has given the green light for India to sign the Indo-Pacific Economic Framework for Prosperity (IPEF) agreements on a clean and fair economy. This approval comes after India had previously withheld its signature pending domestic approval.

In June, 13 IPEF members signed these agreements in Singapore, with India opting to finalize its commitment later. The agreements, which include the Clean Economy and Fair Economy frameworks, aim to boost energy security, climate resilience, and innovation while promoting anti-corruption and transparency in business practices.

The Clean Economy agreement will focus on reducing reliance on fossil fuels, fostering clean energy technologies, and enhancing technical cooperation. It will also support investments, workforce development, and research collaborations.

The Fair Economy agreement seeks to create a transparent business environment, prevent corruption, and improve tax transparency among member countries. This agreement is expected to encourage greater trade and investment in the region.

Launched on May 23, 2022, the IPEF bloc includes 14 members and represents 40% of global economic output and 28% of trade. India has committed to all IPEF pillars except the trade component. The bloc also signed a supply chain agreement in November 2023, with the Clean and Fair Economy agreements pending ratification by at least five partners.

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