IPEF- INDO-PACIFIC ECONOMIC FRAMEWORK

– The Indo-Pacific Economic Framework (IPEF) boasts a group of 14 founding member nations in the Indo-Pacific region, encompassing 40% of global GDP and 28% of world trade. This economic initiative, initiated by U.S. President Joe Biden in 2022, resembles the Trans-Pacific Partnership (TPP), which the U.S. withdrew from in 2017.-

The framework has four pillars:

• supply-chain resilience,
• clean energy
• decarbonisation, taxation,
• anti-corruption, and fair trade.,

– Significance of IPEF lies in countering China’s influence, fostering economic cooperation, and presenting opportunities for India.

– Challenges may include finding common ground among diverse countries, potential deviations from India’s traditional positions, and tax provisions.

– Ensuring credibility and success requires establishing common standards, balancing self-reliance and globalization, addressing taxation issues, and managing tech-related matters.

– Simplifying trade negotiations through empowered negotiators is also crucial for the framework’s effectiveness.

– India has yet to take a call on whether to join the trade pillar, though it has joined the other three.