India, U.S., 12 other IPEF members ink supply chain resilience agreement - The Hindu
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Key Agreement: IPEF Supply Chain Resilience
India, the U.S., and 12 other IPEF members signed an agreement focused on strengthening global supply chains and reducing reliance on single sources, particularly China. This follows the COVID-19 pandemic's disruption of global supply chains.
Benefits for India
The agreement offers several benefits for India, including:
- Reduced dependence on China
- Supply chain diversification
- Increased investment mobilization
- Deeper integration into global value chains
- Support for MSMEs
- Creation of a seamless regional trade ecosystem
IPEF Structure and Pillars
The IPEF, launched in Tokyo in 2022, comprises four pillars: trade, supply chains, clean economy, and fair economy. India participates in all except the trade pillar. The clean economy and fair economy pillars are expected to finalize their talks soon.
Implementation and Monitoring
The agreement will be implemented and monitored through:
- The IPEF Supply Chain Council (annual meetings and progress reports)
- The IPEF Supply Chain Crisis Response Network (emergency support and information sharing)
- The IPEF Labour Rights Advisory Board (promoting labor rights in supply chains)
The Indian Commerce Ministry plans a nationwide outreach program to explain the agreement's benefits to domestic industries.
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