The Union Cabinet has approved the commerce ministry’s proposal to sign agreements on a clean and fair economy under the 14-member Indo-Pacific Economic Framework for Prosperity (IPEF), an official announced on Monday.
India's approval follows the signing of these agreements by 13 IPEF members in June in Singapore, with India committing to join post domestic approval.
The clean economy agreement aims to advance energy security, climate resilience, and greenhouse gas emissions mitigation.
It will also promote innovative methods for reducing fossil fuel reliance, foster technical cooperation, and support clean energy technology development through investments, concessional financing, and collaborative projects.
The fair economy agreement seeks to enhance business transparency and predictability, boost trade and investment, strengthen anti-corruption measures, and improve tax transparency and information exchange.
Launched jointly by the US and other Indo-Pacific nations on May 23, 2022, in Tokyo, the IPEF bloc represents 40% of the world’s economic output and 28% of global trade.
The framework comprises four pillars: trade, supply chains, clean economy, and fair economy. India has joined all pillars except trade.
Members of the IPEF include Australia, Brunei Darussalam, Fiji, India, Indonesia, Japan, South Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, the US, and Vietnam.
The agreements will take effect once at least five IPEF partners complete their ratification processes. The bloc had previously signed the supply chain agreement in November 2023.
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