Context : The 2nd Indo-Pacific Economic Framework for Prosperity (IPEF) negotiations round took place in Bali, Indonesia from 13th-19th March 2023. Negotiators from 13 countries, including India, participated in the second round of negotiation.
During Bali round of negotiations, discussions covered all four pillars of the IPEF, and India participated in discussions related to Pillars II to IV. These four pillars are
IPEF Pillars:
- Trade (Pillar I)
- Supply Chains (Pillar II)
- Clean Economy (Pillar III)
- Fair Economy (Taxation & Anticorruption) – (Pillar IV)
What is Indo-Pacific Economic Framework (IPEF)?
The IPEF is a significant step toward establishing free and fair trade with nations that share the same values of a rule-based international order and a transparent economic system.
What is the Significance for India?
- The Quad framework can be applied in the supply chain network that US technology, Japanese capital, Australia’s logistics, and Indian production could fill the vacuum created by the countering domination of China.
- India can be the destination for new investment such as in the semiconductor sector.
- The IPEF offers India a large opportunity to become a technology leader in the region, especially in two areas- semiconductor supply chains, and clean energy.
Read More : Supply Chain Resilience Initiative
