India signs Supply Chain Resilience Agreement with IPEF Members to reduce dependency on China

India, represented by Commerce and Industry Minister Piyush Goyal, signed the Supply Chain Agreement with the other 13 Indo-Pacific Economic Framework for Prosperity (IPEF) partner countries.

Following the considerable conclusion of discussions in May 2023, the signing of the IPEF Supply Chain Agreement constituted a significant milestone during the Ministerial Meeting.

A Pillar-wise Press Statement was released, outlining the contours and efforts planned for each of the largely completed Pillars.

On November 14, 2023, the United States hosted the third Indo-Pacific Economic Framework for Prosperity (IPEF) Ministerial Meeting in San Francisco, California. Union Minister for Commerce and Industry, Consumer Affairs, Food and Public Distribution, and Textiles, Shri Piyush Goyal, actively participated in the Ministerial meeting, representing India on this critical platform.

The IPEF was launched jointly by the United States and Indo-Pacific area partner countries on May 23, 2022, in Tokyo.

The framework, which includes 14 partner countries such as Australia, Brunei, Fiji, India, Indonesia, Japan, the Republic of Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, Vietnam, and the United States, aims to strengthen economic engagement among these countries with the overarching goal of advancing growth, peace, and prosperity in the region.

The framework is organised around four pillars: trade (Pillar I), supply chains (Pillar II), clean economy (Pillar III), and fair economy (Pillar IV). While India is a spectator in Pillar I, it actively participates in Pillars II–IV.

Significant progress was made at the San Francisco Ministerial Meeting in negotiations under Pillar III (Clean Economy), Pillar IV (Fair Economy), and the Agreement on the Indo-Pacific Economic Framework for Prosperity, which intends to establish a ministerial-level council and a commission.

In the Clean Economy (Pillar III), IPEF partners are committed to expanding collaboration on clean energy and climate-friendly technology research, development, commercialization, availability, accessibility, and deployment.

In his remarks, Mr. Goyal underlined the importance of expanded collaboration among partners in the research and development of new and cost-effective climate-friendly technology.

He emphasised the importance of prioritising the implementation of Cooperative work programmes envisioned under this pillar, such as the hydrogen supply chain initiative and other ideas in the works, such as India’s biofuels and e-waste recycling projects.

The IPEF partners are committed to strengthening the execution of effective anti-corruption and tax policies to boost commerce, trade, and investment among the economies included under the Fair Economy (Pillar IV).

In his intervention, the Union Minister emphasised the primary benefits expected from the Agreement, highlighting greater information sharing among partners, asset recovery, and improving cross-border investigations and prosecutions.

He emphasised that these steps would strengthen the international community’s resolve to battle corruption, money laundering, and terror financing, indicating a commitment to establishing a fair and transparent business environment in the Indo-Pacific region.