India has signed key agreements under the Indo-Pacific Economic Framework for Prosperity (IPEF), focusing on clean energy, climate-friendly technologies, anti-corruption, and tax transparency during Prime Minister Modi’s visit to the U.S.
In conjunction with Prime Minister Narendra Modi’s visit to the United States, India successfully negotiated three agreements as part of the Indo-Pacific Economic Framework (IPEF) in Delaware, centred on activities focused on clean economies and fair economies. These agreements, following Prime Minister Modi’s larger agenda to deepen India’s global economic partnerships, can significantly influence India’s climate and governance objectives.
The agreements are in two major areas: clean economy and fair economy. With regard to the clean economy agreement, it garners cooperation between member states within the IPEF to develop clean energy, climate adaptability, and cut greenhouse gas emissions. The IPEF clean economy agreement will also create opportunities for investment and workforce development into green technology based industries that support India’s objectives of being able to enter global supply chains and expand its goals for managing sustainability nationally.
Types of contribution to the IPEF clean economy agreement are likely to come from the IPEF Catalytic Capital Fund and IPEF Accelerator Fund, both of which are supported by significant pledges from countries, including the United States and Australia, in addition to up-and-coming plans for increased support from Japan, will provide funding along with countries to develop projects across the Indo-Pacific region.
These agreements are an indication of India’s sustained interest in the IPEF framework and its capacity to foster sustainable growth in the Indo-Pacific. Although India signed onto three of four pillars of the IPEF, it has held back from the trade pillar as it declared the current terms do not favour India’s economic interests. The IPEF promotes economic stability and growth across 14 partner countries, including the U.S., Japan, Australia, and South-East Asian countries, as a regional economic framework that began in May 2022.
The agreements signed in Delaware unlock progress for India in accordance with its path to a greener and more transparent economy while also solidifying India’s positioning in the regional and global economy. This has also set up a high-level ministerial oversight mechanism for effective implementation of these initiatives, showcasing India’s commitment to sustainable development and regional cooperation.
