Indo-Pacific Economic Framework For Prosperity

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 percent of trade.

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:

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 favorable for the country.

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 recently participated in the 2nd meeting of the Supply Chain Council as vice-chair.

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