India signed key agreements under the Indo-Pacific Economic Framework for Prosperity (IPEF) on Sunday, focusing on fostering a clean and fair economy. The deals, signed in Delaware, USA, aim to bolster cooperation in clean energy, climate technologies, and anti-corruption measures, according to a statement from India’s commerce ministry.
These agreements are designed to support the development and deployment of clean energy and climate-friendly technologies, stimulate investment, and improve the business environment. They also seek to enhance tax transparency and anti-corruption efforts.
India had earlier delayed signing the agreements, first concluded by 13 IPEF members in Singapore in June, citing the need for domestic approval. The Union Cabinet granted its approval earlier this month, clearing the way for India to join these landmark agreements.
India signed three major pacts: the Clean Economy agreement, the Fair Economy agreement, and the overarching IPEF framework.
Clean Economy Agreement
The Clean Economy agreement seeks to accelerate efforts towards energy security, reduce greenhouse gas (GHG) emissions, and reduce dependency on fossil fuels. The agreement promotes technical cooperation and workforce development, focusing on clean energy projects, concessional financing, and joint collaborative actions like the IPEF Catalytic Capital Fund and the IPEF Accelerator.
The agreement also includes a dialogue on critical minerals, aiming to map resources, promote trade, and foster technical collaboration for mineral recovery and recycling across IPEF members.
Fair Economy Agreement
The Fair Economy agreement aims to create a transparent business environment, boosting trade and investment in member countries. It strengthens anti-corruption frameworks and supports tax transparency by improving the exchange of information between authorities.
"This agreement will enhance cross-border investigations, asset recovery, and efforts to combat corruption, money laundering, and terror financing," the ministry said.
Overarching IPEF Agreement
The overarching IPEF agreement sets up a high-level political oversight mechanism to guide IPEF’s goals and vision. This administrative framework will monitor the progress of various individual agreements under the IPEF.
The IPEF was launched on 23 May 2022, in Tokyo, by the United States and Indo-Pacific partner countries. Its 14 members, including India, Australia, Japan, and the US, represent 40% of the world’s economic output and 28% of global trade.
The framework is built around four pillars: trade, supply chains, clean economy, and fair economy. India has opted out of the trade pillar.
In November 2023, the IPEF concluded negotiations for agreements on clean and fair economies and an overarching pact. These agreements will come into force once five members ratify them.
The IPEF bloc signed a supply chain agreement in November 2023.
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