India signed and exchanged the first-of-its-kind agreements focused on Clean Economy, Fair Economy, and the IPEF Overarching arrangement under Indo -Pacific Economic Framework (IPEF) for prosperity, Ministry of Commerce & industry said on Sunday.
These agreements were signed in the presence of Prime Minister Narendra Modi who is on 3-day visit to the US for the Quad Summit.
The Agreement on Clean Economy intends to promote technical cooperation, workforce development, capacity building, and research collaborations; and collaborate to facilitate development, access, and deployment of clean energy and climate-friendly technologies
It aims to collectively accelerate efforts of IPEF partners towards energy security and transition, climate resilience and adaptation and GHG emissions mitigation.
This agreement will facilitate investments, project financing including concessional financing, joint collaborative projects, workforce development and Technical Assistance and Capacity Building for industries, in particular for the MSMEs, and facilitate further integration of Indian companies in the global value chains, particularly in the Indo-Pacific region, the Commerce Ministry said in the statement.
The IPEF Fair Economy Agreement aims to create a more transparent and predictable trade and investment environment across the Indo-Pacific.
IPEF partners will collaborate to enhance their efforts in preventing and combating corruption, including bribery, and supporting initiatives to improve tax transparency, the exchange of information, domestic resource mobilization, and tax administration.
This will support India’s efforts in fighting corruption, money laundering, and terror financing.
Recognising the critical role of technical assistance and capacity building (TACB) in achieving the commitments outlined in the proposed agreement and ensuring effective implementation and enforcement of anti-corruption measures, the partners are committed to identifying and implementing TACB initiatives.
Further, the IPEF overarching agreement seeks to establish a high-level political oversight framework at the Ministerial level over the various individual IPEF agreements while setting general guidance and goals, and guiding Leaders’ vision and mandate for IPEF.
This agreement would provide identity to the group and longevity to the IPEF partnership, by creating a formal mechanism and establishing a forum for Ministerial discussions on emerging issues, etc.
The Ministry said that this agreement is expected to facilitate the effective implementation of subject agreements (Pillars II-IV), that have the potential to enhance India’s productive capacity, and integration into supply chains, and promote innovation, in line with the concept of Atmanirbhar Bharat.
Notably, the Union Cabinet had accorded the approval earlier this month for signing and ratification of these three agreements focused on the Clean Economy, Fair Economy, and the overarching IPEF Agreement which were signed by other IPEF members on June 6, 2024.