About 

• The Indo-Pacific Economic Framework for Prosperity (IPEF) was launched in Tokyo (Japan) by the US and other Indo-Pacific countries in 2022. 
• IPEF aims to strengthen economic engagement and cooperation among partner countries with the goal of advancing growth, economic stability and prosperity in the region. 
• The framework includes 14 countries — Australia, Brunei, India, Indonesia, Japan, the Republic of Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, Vietnam, Fiji and the United States. 
• Together, the participants account for about 40 percent of global GDP and 30 per cent of trade. 

What would IPEF do?

• IPEF provides a platform for countries in the region to collaborate on advancing resilient, sustainable, and inclusive economic growth.
• The framework is structured around four pillars relating to: 
  • Trade (Pillar I);
  • Supply Chains (Pillar II); 
  • Clean Economy (Pillar III); and 
  • Fair Economy (Pillar IV).
• India had joined Pillars II to IV of IPEF while it maintains observer status for pillar I as the current terms are seen as less favourable for the country.

Significance

• The IPEF is part of the U.S.’s “Pivot to Asia” programme, re-imagining the Indo-Pacific as a geographic construct including America. 
• The Quad grouping, consisting India, Australia, Japan and the U.S., is part of the same pitch made by the U.S. administration.
• IPEF is intended to offer US allies an alternative to China’s growing commercial presence across the Asia-Pacific.
• The IPEF’s non-specific and flexible nature also suits India, which has held strong views on a range of issues like labour standards, environmental restrictions on fossil fuels, and data localisation.
• India’s inclusion also comes from a geopolitical need to counter China’s virtual control over Asian trade.

Why in News?

• India has recently signed agreements focused on Clean Economy, Fair Economy, and the IPEF Overarching arrangement under the framework of IPEF.

IPEF Clean Economy Agreement (Pillar-III):

• The Agreement on Clean Economy seeks to advance cooperation among member countries in clean energy and climate-friendly technologies.

IPEF Fair Economy Agreement (Pillar-IV):

• The Agreement aims to create a more transparent and predictable trade and investment environment across the Indo-Pacific. 
• It focuses on enhancing information sharing among partners, facilitating asset recovery, and strengthening cross-border investigations and prosecutions. 

Overarching IPEF Agreement:

• The Overarching Agreement is an administrative agreement establishing an oversight Ministerial-level mechanism. 
• This Agreement seeks to establish a high-level political oversight framework at the Ministerial level over the various individual IPEF agreements while setting general guidance and goals, and guiding Leaders’ vision and mandate for IPEF.