India and 13 other members of the Indo-Pacific Economic Framework (IPEF) entered into a supply chain resilience agreement; will fortify and strengthen global supply chains, and foster adaptability, stability, and sustainability.

It aims to cut dependence on China and help shift manufacturing of crucial goods to member nations. The pact would come into force after the implementation of the agreement by any of the five member countries.

The IPEF is structured around four pillars relating to trade, supply chains, clean economy and fair economy (issues like tax and anti-corruption). India has joined all the pillars except the trade pillar.

LEARNING FROM HOME/ WITHOUT CLASSES/ BASICS The Indo-Pacific Economic Framework for Prosperity (IPEF) was launched in May 2022; that seeks an open, inclusive, interconnected, and secure Indo-Pacific for sustainable growth of the region. It’s a loose framework that brings together 13 countries to shape rules on key focus areas like the digital economy, trusted supply chains, clean economic growth, corporate accountability, and anti-corruption. Its members include the US, Australia, Brunei Darussalam, Fiji, India, Indonesia, Japan, the Republic of Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand and Vietnam. It’s an economic agreement, and it has four pillars. They are connected economy (or trade), supply chains, clean economy, and fair economy. India sees this framework as crucial for continued growth, peace, and prosperity in the Indo-Pacific region and intends to deepen economic engagement among partners in a free, open, and inclusive manner. The group gives flexibility to its members to be part of discussions and agreements on any of the issues or opt out of some. India is out of the discussion on trade pillar.