The Indo-Pacific Economic Framework for Prosperity (IPEF) is a new initiative aimed at fostering economic growth and prosperity in the Indo-Pacific region. Launched in May 2022 by US President Joe Biden, the framework brings together 14 founding member nations to create new rules for the 21st-century economy. The main focus of IPEF is to promote fair and resilient trade, supply chain resilience, infrastructure, clean energy, decarbonization, taxation, and anti-corruption.
Japan Urges India to Join IPEF Trade Pillar
Japan has been a strong advocate for India’s participation in the IPEF trade pillar, which also includes the digital economy. Japan has recognized India’s potential to play a key role in the economic development of the Indo-Pacific region and has urged the country to join the IPEF trade pillar. However, despite Japan’s efforts, India has decided not to be part of the trade pillar.
Lack of Consensus on Key Issues
India’s decision not to join the IPEF trade pillar is due to the lack of consensus regarding key issues such as labour, environment, digital trade, and public procurement. The Indian government believes that the IPEF trade pillar should be based on a comprehensive and well-balanced approach that takes into account the interests and concerns of all participating countries. Without a common understanding on these key issues, India is unwilling to join the trade pillar.