Indo-Pacific Economic Framework (IPEF)

The Indo-Pacific Economic Framework, launched by United States President Joe Biden is being joined by 12 other countries including India.

Indo-Pacific Economic Framework

The Indo-Pacific Economic Framework for Prosperity (IPEF) aims to reassert U.S. economic engagement and to provide a U.S.-led alternative to China’s economic statecraft in the region.

The 12 countries other than the U.S. are India, Australia, Brunei, Indonesia, Japan, South Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, and Vietnam (Taiwan is not part of it).

They together account for 40% of the world’s GDP. US officials have emphasised that IPEF is not a free trade agreement but one that will offer flexibility.

The negotiations will be along four main pillars.

• Trade
• Supply chain resiliency
• Clean energy and decarbonisation
• Tax and anti-corruption

India and the IPEF

• India is committed to a free, open, and inclusive Indo-Pacific region and believes that deepening economic engagement among partners is crucial for continued growth, peace, and prosperity.
• India is keen to collaborate with partner countries under the IPEF and work towards advancing regional economic connectivity, integration and boosting trade and investment within the region.
• India (Lothal, the world’s oldest commercial port) has been a major centre in the trade flows of the Indo-Pacific region for centuries.
• India’s main concern is on the issue of data localization for which a Bill that envisages a framework for localising Indian data and the establishment of a Data Protection Authority has been introduced.