These agreements aim to build a cleaner, fairer economy through the Indo-Pacific Economic Framework for Prosperity (IPEF), which is led by the United States. During Prime Minister Narendra Modi's visit to the United States, these agreements were formalized. They aim to expedite clean energy projects and improve economic transparency.
The Agreements' Key Goals
A number of important areas are covered in the agreements, such as the development and use of clean energy technologies, strengthening anti-corruption efforts, and improving tax transparency.
Initiatives for a clean economy
The clean economy part of the IPEF is all about Securing energy and cutting down greenhouse gas emissions, and fostering new ideas to reduce fossil fuel use. Promoting technical cooperation between the countries, helping them share knowledge and resources to achieve clean energy goals.
Agreements on fair economy
Fair economy agreements aim to create:
- There is a transparent and predictable business environment in which everyone is treated fairly.
- To improve economic cooperation between countries, better information sharing is needed.
- Improved systems for asset recovery and cross-border financial crime investigation.
IPEF Initiatives Receive Financial Support
The IPEF includes the following resources to support these efforts:
- A fund established by the IPEF Catalytic Capital Fund, which encourages private companies to invest. The fund started with $33 million from member countries.
- To accelerate investments in clean energy and other projects, the US International Development Finance Corporation provided $300 million to the PGI Investment Accelerator.
Criticisms and concerns
- Some countries were unable to fully understand the terms due to lack of transparency during the negotiations.
- It could limit India's ability to change its own rules for important infrastructure projects because of the non-derogation clause.
- IPEF may not always align with India's national interests when adopting international standards.
IPEF's strategic importance
14 countries participate in the IPEF, which addresses four key areas: trade, supply chain resilience, clean economy, and fair economy. As part of a regional partnership that plays a significant role in the global economy, India's participation underscores its
