What is Indo-Pacific Economic Framework for Prosperity? India and 12 countries join alliance

May 24, 2022, 12:03 IST

The IPEF seeks to strengthen economic partnership among participating countries with the objective of enhancing sustainability, resilience, inclusiveness, economic growth, fairness and competitiveness in the Indo-Pacific region, as per the Ministry of External Affairs (MEA). 

Indo-Pacific Economic Framework for Prosperity
Indo-Pacific Economic Framework for Prosperity

India and 12 other countries joined the Indo-Pacific Economic Framework for Prosperity unveiled by US President Joe Biden on May 23, 2022. The framework seeks an open, inclusive, interconnected and secure Indo-Pacific and aims to counter China's expansion in the region. This comes ahead of the crucial QUAD leaders' meeting in Tokyo on May 24th. 

President Biden announced that a dozen Indo-Pacific countries that represent 40 percent of the global GDP will join the US in a sweeping economic initiative that has been designed to counter China’s influence in the region.  The countries include all those falling in the Indo Pacific Region including Indonesia, Australia, Brunei, Malaysia, Thailand, Japan, Republic of Korea, New Zealand, the Philippines, Singapore and Vietnam. 

President Biden said that the vision for an Indo-Pacific that is free and open and secure as well as resilient, where economic growth is sustainable and inclusive. He said we are writing new rules for the 21st-century economy. We are going to have all our country's economies grow faster and fair.

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What is IPEF?

IPEF is short for Indo-Pacific Economic Framework for Prosperity. The framework envisions a free, open and secure Indo Pacific Region. 

What is the main purpose of IPEF?

The IPEF seeks to strengthen economic partnership among participating countries with the objective of enhancing sustainability, resilience, inclusiveness, economic growth, fairness and competitiveness in the Indo-Pacific region, as per the Ministry of External Affairs (MEA). 

PM Modi underlines 3Ts of resilient supply chains

Prime Minister Narendra Modi participated in the discussions for the Indo-Pacific Economic Framework for Prosperity (IPEF) and highlighted that the foundation of resilient supply chains must be 3Ts- Trust, Transparency and Timeliness. 

The discussions over the framework saw participation from Japanese PM Fumio Kishida and virtual presence of leaders of other partner countries namely Malaysia, Brunei, Indonesia, Republic of Korea, Philippines, New Zealand, Thailand, Singapore and Vietnam.
The framework will focus on four key pillars to establish high-standard commitments that will deepen our economic engagement in the region.

Prime Minister Narendra Modi congratulated US President Biden for this initiative and said "India will work for an inclusive and flexible Indo-Pacific Economic Framework; Trust, Transparency, and Timeliness are key."

India signs Investment Incentive Agreement with US to boost investment in key sectors

India and the United States signed an Investment Incentive Agreement (IIA) on May 23, 2022 to pave a path to strengthen and promote DFC's investments in India in key sectors. The agreement was signed between Foreign Secretary Vinay Kwatra and Chief Executive Officer of the US International Development Finance Corporation (DFC) Scott A. Nathan. 

Sangeeta Nair is a news professional with 6+ years of experience in news, education, lifestyle, research and videos. She has a bachelors in History and Master in Mass Communication. At jagranjosh.com, she writes on Current Affairs. She can be reached at sangeeta.nair@jagrannewmedia.com.
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