The story so far: On Monday, India agreed to be a part of the Indo-Pacific Economic Framework for Prosperity (IPEF), a U.S.-led economic grouping comprising 12 countries. Prime Minister Narendra Modi, who was in Japan for the Quad Summit, joined U.S. President Joe Biden, Japanese Prime Minister Fumio Kishida and leaders of ten countries at the launch of the framework in Tokyo, initiating the path for negotiations among the ‘founding members.’ These include Australia, Brunei, India, Indonesia, Japan, South Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand and Vietnam. Together, these countries account for 40 per cent of the global GDP.
The economic framework broadly rests on four pillars: trade, supply chain resilience, clean energy and decarbonisation, and taxes and anti-corruption measures. A joint statement suggests the framework intends to “advance resilience, sustainability, inclusiveness, economic growth, fairness, and competitiveness” in these economies.
Mr. Modi described the grouping as born from a collective desire to make the Indo-Pacific region an engine of global economic growth, calling for common and creative solutions to tackle economic challenges in the region. “India is keen to collaborate with partner countries under the IPEF and work towards advancing regional economic connectivity, integration and boosting trade and investment within the region,” a government statement read.
