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Recently, India signed and exchanged first-of-its-kind agreements focused on Clean Economy, Fair Economy, and IPEF Overarching arrangement under Indo-Pacific Economic Framework (IPEF) for Prosperity.
- IPEF is structured around 4-pillars relating to Trade (Pillar I); Supply Chain Resilience (Pillar II); Clean Economy (Pillar III); and Fair Economy (Pillar IV).
- Previously, India has ratified Agreement on Supply Chain Resilience (Pillar II) in February 2024 and has maintained an observer status in Pillar-I.
IPEF Clean Economy Agreement (Pillar-III)
- Development and deployment of clean energy technologies: To accelerate energy security, climate resilience, and emissions mitigation among IPEF partners.
- Investments and capacity building: For industries, especially MSMEs and integrate Indian companies into global value chains through collaborative programs such as IPEF Catalytic Capital Fund, IPEF Accelerator, etc.
IPEF Fair Economy Agreement (Pillar-IV)
- Transparent and predictable trade and investment environment: By combating corruption and supporting initiatives to improve tax transparency, domestic resource mobilization, and tax administration.
- Enhancing information sharing, facilitating asset recovery, and strengthening cross-border investigations and prosecutions.
Overarching IPEF Agreement
- Aim: Establish a high-level political oversight framework at Ministerial level over various individual IPEF agreements.
- Significance: Provide identity to the group and longevity to IPEF partnership by creating a formal mechanism, potential to enhance India's productive capacity, integration into supply chains, etc.
About IPEF
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