Exploring the Indo Pacific Economic Framework: A New Era of Economic Cooperation

Introduction to the Indo Pacific Economic Framework (IPEF)

The Indo Pacific Economic Framework (IPEF) stands as a significant regional initiative, introduced by US President Joe Biden. This framework is designed to bolster economic cooperation and trade among the nations within the Indo-Pacific region. By doing so, it aims to counterbalance China's growing influence and establish novel supply chains, particularly those based on emerging technologies.

Members of the IPEF

The IPEF encompasses 14 countries, primarily dynamic economic forces situated in the Indo-Pacific. Notably absent are China and its three close allies from ASEAN — Myanmar, Laos, and Cambodia. This strategic exclusion is pivotal in reshaping economic alliances in the region.

India's Role in the IPEF

India plays a crucial role in the ongoing negotiations within the IPEF. Although India has opted out of the trade pillar, its involvement is expected to foster increased business and manufacturing opportunities. As member countries seek alternatives to China for their supply chains, India stands to benefit from this shift towards emerging technologies.

Motivations Behind the Launch of the IPEF

The inception of the IPEF is a strategic move by the US to reorient its focus towards the east and mitigate China's economic dominance in the Indo-Pacific. By deliberately excluding China and its close allies, the framework seeks to establish an alternative economic narrative and foster supply chains that align with the interests of its member countries.

Significance of India's Participation

India's involvement in the IPEF is poised to unlock significant economic opportunities and manufacturing growth. As member countries seek to diversify their supply chains, India's role could lead to collaborative economic activities and diversification away from China-centric dependencies.

Pillars of the Indo Pacific Economic Framework

The Economic Initiative within the IPEF is structured around four key pillars:

• Trade: This pillar aims to enhance economic ties, promote trade, and facilitate cross-border commerce among member countries.
• Supply-Chain Resilience: Focusing on the diversification of supply chains, this pillar seeks to reduce single-source dependencies and enhance economic resilience.
• Clean Economy: This involves collaboration on environmentally sustainable practices and technologies, promoting a transition to cleaner energy sources and resource-efficient production methods.
• Fair Economy (Tax and Anti-Corruption): This pillar addresses fairness in economic activities by tackling tax issues and combating corruption through cooperative efforts.