India's formal acceptance of two landmark agreements under the Indo-Pacific Economic Framework for Prosperity (IPEF) – focusing on clean and fair economies – signifies its commitment to shared economic goals and sustainable development. This follows Prime Minister Modi's visit to the US for the Quad Summit.
US-India trade is increasing, with Indian merchandise exports to the US rising by over 50% since 2018. However, India seeks the restoration of the Generalized System of Preferences (GSP). The IPEF, representing 40% of global GDP, aims to foster resilience and sustainable development through its four pillars: trade, supply chains, clean economy, and fair economy. India's commitment to net-zero carbon emissions by 2070 aligns with the IPEF's clean economy goals, unlocking opportunities in climate financing and green technologies.
The IPEF's focus on resilient supply chains is crucial, addressing vulnerabilities exposed by the COVID-19 pandemic. India's role in high-end semiconductor manufacturing is vital. The 'fair economy' pillar aims to create a transparent and predictable trade environment, mitigating hurdles in emerging markets and attracting investments. This includes addressing issues like cross-border money laundering and promoting investor confidence.
The IPEF contrasts with China's Belt and Road Initiative by emphasizing transparency and open dialogue. While progress in the Quad is showing results, the IPEF still requires further development. The article concludes that the IPEF represents more than trade agreements; it is a strategic partnership aiming for inclusive growth, environmental sustainability, and fair competition, aligning with India's domestic and foreign policy ambitions.