PM in US: India signs key pacts under Indo-Pacific Economic Framework for prosperity

India signed key agreements focused on a clean economy, fair economy and the IPEF Overarching arrangement under the Indo-Pacific Economic Framework for Prosperity (IPEF) during Prime Minister Narendra Modi’s meeting with the leaders at the Quad Summit in the US, the government said on Sunday.

According to a statement from the Ministry of Commerce and Industry, these pacts would facilitate development, access and deployment of clean energy and climate-friendly technologies.

The IPEF 'Clean Economy Agreement' aims to promote technical cooperation, workforce development, capacity building, and research collaborations; and collaborate to facilitate development, access, and deployment of clean energy and climate-friendly technologies.

It aims to collectively accelerate efforts of IPEF partners towards energy security and transition, climate resilience and adaptation and GHG emissions mitigation, said the ministry.

The IPEF 'Fair Economy Agreement' intends to create a more transparent and predictable trade and investment environment across the Indo-Pacific.

To achieve these goals, the IPEF partners will collaborate to enhance their efforts in preventing and combating corruption, including bribery, and supporting initiatives to improve tax transparency, the exchange of information, domestic resource mobilisation, and tax administration.

The 'Overarching IPEF Agreement' seeks to establish a high-level political oversight framework at the Ministerial level over the various individual IPEF agreements, while setting general guidance and goals.

The ministry said that agreement is expected to facilitate the effective implementation of subject agreements, that have the potential to enhance India's productive capacity, and integration into supply chains, and promote innovation, in line with the concept of ‘Atmanirbhar Bharat’.

The Union Cabinet, chaired by PM Modi, had accorded the approval earlier this month for the signing and ratification of these three agreements.

The IPEF partners aim to catalyse investment in green technology and reduce GHG emissions through various means including annual business matching events under the Investor Forum.

At the inaugural forum in Singapore in June, IPEF partners identified $23 billion worth priority infrastructure projects, including $4 billion from India which offered potential opportunities for investment in some Indian renewable energy companies.

IPEF was launched on May 23, 2022 in Tokyo, comprising 14 countries. It seeks to strengthen economic engagement and cooperation among partner countries to advance growth, economic stability and prosperity in the region.