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Launched in May 2022, the Indo-Pacific Economic Framework for Prosperity (IPEF) consists of 14 partner countries
India, along with 13 other member countries, took part in the third Ministerial meeting of the Indo-Pacific Economic Framework for Prosperity (IPEF) on Tuesday (September 24, 2024). The virtual session, attended by Union Commerce and Industry Minister Piyush Goyal, focused on the key IPEF pillars of Supply Chain Resilience (Pillar II), Clean Economy (Pillar III), and Fair Economy (Pillar IV). The Ministers emphasized the importance of these pillars in fostering stronger economic ties and ensuring sustainable and equitable growth across the Indo-Pacific region.
During the meeting, the IPEF partners expressed their support for the upcoming entry into force of three crucial agreements: the Clean Economy Agreement, the Fair Economy Agreement, and the overarching IPEF Agreement. These agreements, set to come into effect in mid-October 2024, are expected to enhance economic cooperation and deliver tangible benefits for all member states.
A central theme of the meeting was the progress made in strengthening the supply chains of critical sectors like semiconductors, minerals, and chemicals. Minister Goyal stressed the need to address the challenges posed by supply chain disruptions, particularly during global crises like the Covid-19 pandemic. The Supply Chain Agreement, which has been in effect since February 2024, seeks to create more resilient and competitive supply chains, ensuring that workers' rights are respected, and disruptions are minimized.
The IPEF has established three key bodies to oversee the implementation of the Supply Chain Agreement: the Supply Chain Council, the Crisis Response Network, and the Labor Rights Advisory Board. India, playing a crucial role in the leadership of these bodies, has been elected as Vice Chair of the Supply Chain Council, with the United States as Chair. Additionally, the IPEF countries are collaborating to further strengthen their supply chains in sectors critical to the green transition, healthcare, and transportation.
Minister Goyal highlighted the importance of addressing global supply chain concentration, particularly in sectors such as clean energy, defense, telecommunications, and pharmaceuticals. With the growing global demand for clean energy solutions, it is crucial to secure a reliable supply of essential minerals for green technologies. The meeting also underscored the need for resilient supply chains in the agrochemical sector, given the increasing pressure on global agricultural production.
The Clean Economy Agreement, a significant pillar of the IPEF, aims to accelerate the transition towards sustainable energy and reduce dependence on fossil fuels. The agreement promotes energy security, climate resilience, and innovation in clean energy technologies. Minister Goyal emphasized India's commitment to the agreement and its focus on developing clean energy infrastructure and fostering technical cooperation among IPEF partners.
The eight Cooperative Work Programs (CWPs) established under the Clean Economy Agreement play a vital role in facilitating collaboration between IPEF partners on key climate-related topics. These work programs are designed to advance cooperation in areas such as hydrogen energy, carbon markets, and small modular reactors (SMRs). India has been particularly active in proposing initiatives related to urban mining of e-waste, underscoring its commitment to sustainability.
One of the key achievements highlighted during the meeting was the success of the first IPEF Clean Economy Investor Forum held in Singapore earlier this year. This forum brought together investors and project proponents to explore investment opportunities in climate-friendly technologies, further strengthening the IPEF’s commitment to sustainable economic growth.
The Fair Economy Agreement, which focuses on enhancing transparency, anti-corruption measures, and tax administration efficiency, was another key topic of discussion. By strengthening these areas, the IPEF aims to create a more predictable and transparent business environment, fostering trade and investment across the region.
India has made significant strides in building a robust anti-corruption regime. Minister Goyal highlighted India’s commitment to implementing effective anti-corruption measures and promoting tax transparency through legislative and regulatory reforms. The Fair Economy Agreement’s Technical Assistance and Capacity Building (TACB) initiatives are designed to support IPEF partners in achieving these objectives, with programs focused on enforcement training, corporate liability, and public procurement oversight.
The United States Department of Commerce’s Commercial Law Development Program (CLDP) is leading efforts to provide IPEF partners with the technical assistance needed to implement the anti-corruption provisions of the agreement. Additionally, the US Treasury Department’s Office of Technical Assistance (OTA) has been conducting workshops to support effective tax administration, which is crucial for achieving broader economic and development goals.
Minister Goyal emphasized that India is fully committed to the goals of the IPEF and is prepared to leverage its strengths in areas such as technological advancements, investment capacity, market potential, and a skilled workforce.
In line with Prime Minister Modi’s vision of the Gati Shakti initiative, which aims to improve India’s logistics and transportation infrastructure, the IPEF’s focus on supply chain resilience aligns perfectly with India’s domestic priorities. The Minister stressed the importance of workforce development in building resilient supply chains and highlighted the need for skill development, reskilling, and upskilling initiatives across the IPEF region to facilitate workforce mobility.
The IPEF Ministers agreed to continue monitoring the progress of the various agreements and initiatives, with a focus on further operationalizing the Supply Chain Agreement, Clean Economy Agreement, and Fair Economy Agreement. The first meetings of the IPEF Council and Joint Commission, established under the overarching IPEF Agreement, are expected to take place in the coming months.
Launched in May 2022, the Indo-Pacific Economic Framework for Prosperity (IPEF) consists of 14 partner countries, including Australia, Brunei, Fiji, India, Indonesia, Japan, Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, Vietnam, and the United States. The framework is designed to strengthen economic cooperation and promote growth, stability, and prosperity in the Indo-Pacific region.
The IPEF is structured around four pillars: Trade (Pillar I), Supply Chain Resilience (Pillar II), Clean Economy (Pillar III), and Fair Economy (Pillar IV). While India has signed agreements related to Pillars II, III, and IV, it currently holds an observer status for Pillar I, as the terms of the trade agreement are still under consideration.
As the IPEF moves forward with the implementation of these agreements, member countries, including India, are expected to benefit from increased collaboration, enhanced economic resilience, and a stronger foundation for sustainable development across the Indo-Pacific region.
During the meeting, the IPEF partners expressed their support for the upcoming entry into force of three crucial agreements: the Clean Economy Agreement, the Fair Economy Agreement, and the overarching IPEF Agreement. These agreements, set to come into effect in mid-October 2024, are expected to enhance economic cooperation and deliver tangible benefits for all member states.
A central theme of the meeting was the progress made in strengthening the supply chains of critical sectors like semiconductors, minerals, and chemicals. Minister Goyal stressed the need to address the challenges posed by supply chain disruptions, particularly during global crises like the Covid-19 pandemic. The Supply Chain Agreement, which has been in effect since February 2024, seeks to create more resilient and competitive supply chains, ensuring that workers' rights are respected, and disruptions are minimized.
The IPEF has established three key bodies to oversee the implementation of the Supply Chain Agreement: the Supply Chain Council, the Crisis Response Network, and the Labor Rights Advisory Board. India, playing a crucial role in the leadership of these bodies, has been elected as Vice Chair of the Supply Chain Council, with the United States as Chair. Additionally, the IPEF countries are collaborating to further strengthen their supply chains in sectors critical to the green transition, healthcare, and transportation.
Minister Goyal highlighted the importance of addressing global supply chain concentration, particularly in sectors such as clean energy, defense, telecommunications, and pharmaceuticals. With the growing global demand for clean energy solutions, it is crucial to secure a reliable supply of essential minerals for green technologies. The meeting also underscored the need for resilient supply chains in the agrochemical sector, given the increasing pressure on global agricultural production.
The Clean Economy Agreement, a significant pillar of the IPEF, aims to accelerate the transition towards sustainable energy and reduce dependence on fossil fuels. The agreement promotes energy security, climate resilience, and innovation in clean energy technologies. Minister Goyal emphasized India's commitment to the agreement and its focus on developing clean energy infrastructure and fostering technical cooperation among IPEF partners.
The eight Cooperative Work Programs (CWPs) established under the Clean Economy Agreement play a vital role in facilitating collaboration between IPEF partners on key climate-related topics. These work programs are designed to advance cooperation in areas such as hydrogen energy, carbon markets, and small modular reactors (SMRs). India has been particularly active in proposing initiatives related to urban mining of e-waste, underscoring its commitment to sustainability.
One of the key achievements highlighted during the meeting was the success of the first IPEF Clean Economy Investor Forum held in Singapore earlier this year. This forum brought together investors and project proponents to explore investment opportunities in climate-friendly technologies, further strengthening the IPEF’s commitment to sustainable economic growth.
The Fair Economy Agreement, which focuses on enhancing transparency, anti-corruption measures, and tax administration efficiency, was another key topic of discussion. By strengthening these areas, the IPEF aims to create a more predictable and transparent business environment, fostering trade and investment across the region.
India has made significant strides in building a robust anti-corruption regime. Minister Goyal highlighted India’s commitment to implementing effective anti-corruption measures and promoting tax transparency through legislative and regulatory reforms. The Fair Economy Agreement’s Technical Assistance and Capacity Building (TACB) initiatives are designed to support IPEF partners in achieving these objectives, with programs focused on enforcement training, corporate liability, and public procurement oversight.
The United States Department of Commerce’s Commercial Law Development Program (CLDP) is leading efforts to provide IPEF partners with the technical assistance needed to implement the anti-corruption provisions of the agreement. Additionally, the US Treasury Department’s Office of Technical Assistance (OTA) has been conducting workshops to support effective tax administration, which is crucial for achieving broader economic and development goals.
Minister Goyal emphasized that India is fully committed to the goals of the IPEF and is prepared to leverage its strengths in areas such as technological advancements, investment capacity, market potential, and a skilled workforce.
In line with Prime Minister Modi’s vision of the Gati Shakti initiative, which aims to improve India’s logistics and transportation infrastructure, the IPEF’s focus on supply chain resilience aligns perfectly with India’s domestic priorities. The Minister stressed the importance of workforce development in building resilient supply chains and highlighted the need for skill development, reskilling, and upskilling initiatives across the IPEF region to facilitate workforce mobility.
The IPEF Ministers agreed to continue monitoring the progress of the various agreements and initiatives, with a focus on further operationalizing the Supply Chain Agreement, Clean Economy Agreement, and Fair Economy Agreement. The first meetings of the IPEF Council and Joint Commission, established under the overarching IPEF Agreement, are expected to take place in the coming months.
Launched in May 2022, the Indo-Pacific Economic Framework for Prosperity (IPEF) consists of 14 partner countries, including Australia, Brunei, Fiji, India, Indonesia, Japan, Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, Vietnam, and the United States. The framework is designed to strengthen economic cooperation and promote growth, stability, and prosperity in the Indo-Pacific region.
The IPEF is structured around four pillars: Trade (Pillar I), Supply Chain Resilience (Pillar II), Clean Economy (Pillar III), and Fair Economy (Pillar IV). While India has signed agreements related to Pillars II, III, and IV, it currently holds an observer status for Pillar I, as the terms of the trade agreement are still under consideration.
As the IPEF moves forward with the implementation of these agreements, member countries, including India, are expected to benefit from increased collaboration, enhanced economic resilience, and a stronger foundation for sustainable development across the Indo-Pacific region.
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