India has signed three major agreements under the Indo-Pacific Economic Framework (IPEF) during Prime Minister Narendra Modi’s visit to the US. These agreements focus on Clean Economy, Fair Economy, and a broader IPEF administrative framework, further strengthening India’s role in the Indo-Pacific.
Launched in May 2022, the Indo-Pacific Economic Framework (IPEF) aims to improve economic cooperation between its 14 member countries. IPEF has four main pillars: Trade, Supply Chain Resilience, Clean Economy, and Fair Economy. India previously ratified the Supply Chain agreement and now deepens its participation with these new signings.
The Clean Economy agreement is a key element of India’s IPEF participation. It promotes technical collaboration, capacity building, and joint research efforts to advance clean energy transitions and climate resilience. The deal focuses on reducing greenhouse gas emissions and integrates Indian companies, particularly MSMEs, into global value chains.
Key initiatives include the IPEF Catalytic Capital Fund and the IPEF Accelerator to drive clean energy investments.
The Fair Economy agreement aims to create a more transparent business environment in the Indo-Pacific region. It strengthens cross-border collaboration on anti-corruption efforts, enhances tax transparency, and combats financial crimes like money laundering and terror financing.
This agreement also supports India’s fight against corruption and its efforts to improve tax systems through technical assistance and capacity building.
An overarching IPEF agreement was also signed, establishing high-level political oversight to ensure the effective implementation of IPEF commitments. This deal sets up forums for ongoing discussions and provides guidance on emerging issues, aligning with India’s self-reliance vision, Atmanirbhar Bharat.
India’s involvement in the inaugural IPEF Investor Forum identified priority projects worth USD 4 billion in renewable energy. Additionally, the United States International Development Finance Corporation (DFC) committed USD 1.5 billion to support India’s energy transition and digital inclusion.
With these agreements, India is set to strengthen its position in the Indo-Pacific, fostering economic growth and cooperation.
