India joins US-led IPEF bloc, signs clean and fair economy agreements

27 Sep, 2024

India joins US-led IPEF bloc, signs clean and fair economy agreements

India has signed agreements under the US-led 14-member Indo-Pacific Economic Framework for Prosperity (IPEF) bloc, focusing on a clean and fair economy. These agreements, signed during Prime Minister Narendra Modi’s visit to the US, aim to foster the development and deployment of clean energy and climate-friendly technologies while enhancing anti-corruption measures and tax transparency among member countries. The clean economy agreement seeks to accelerate energy security efforts, reduce dependence on fossil fuels, and promote technical cooperation in mitigating greenhouse gas emissions.

The fair economy agreement aims to create a transparent business environment, encouraging trade and investment among member nations. It emphasizes information sharing, asset recovery, and cross-border investigation and prosecution. Additionally, the IPEF offers platforms for technical assistance and funding, such as the IPEF Catalytic Capital Fund, with an initial grant of $33 million, targeting private investments worth $3.3 billion.

Despite the potential benefits, concerns exist about the secrecy of IPEF negotiations and their implications for India’s domestic regulatory flexibility. It’s essential for India to maintain adaptable standards for infrastructure projects to avoid restrictive international commitments. The IPEF’s strategic focus on trade, supply chain resilience, clean economy, and fair economy demonstrates its role in strengthening regional economic cooperation.