Lok Sabha Question No. 1816 (UNSTARRED), answered on 2023-12-13
Subject: Indo-Pacific Economic Framework
Ministry: COMMERCE AND INDUSTRY
Asked by: Rajkumar Chahar, Bholanath (B.P. Saroj)

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 1816 TO BE ANSWERED ON 13/12/2023

## INDO-PACIFIC ECONOMIC FRAMEWORK

## 1816.  SHRI RAJ KUMAR CHAHAR: SHRI BHOLANATH (B.P. SAROJ):

Will the Minister of COMMERCE & INDUSTRY ( वाणिज्य एवं उद्योग मंत्री ) be pleased to state:

(a) the details of the Indo-Pacific Economic Framework (IPEF) Supply Chain Agreement, which has been signed by Bharat recently during the Meet; and

(b) the manner in which the negotiations for Pillar-III (Clean Economy), Pillar-IV (Fair Economy), and  the  Agreement  on  the  Indo-Pacific  Economic  Framework  for  Prosperity  are  likely  to  help  the country?

## ANSWER

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## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SMT. ANUPRIYA PATEL)

(a) IPEF  partners,  including  India,  signed  the  Indo-Pacific  Economic  Framework  for  Prosperity Agreement Relating to Supply Chain Resilience (IPEF Supply Chain Agreement) on 14 November 2023. The IPEF Supply Chain Agreement is a first-of-its-kind plurilateral Agreement that aims to increase the resilience, efficiency,  productivity,  sustainability,  transparency,  diversification,  security,  fairness,  and  inclusivity  of supply chains in the Indo-Pacific region. It seeks to establish institutional mechanisms to enable IPEF partners to work together on supply chains, including by developing deeper shared understanding of regional supply chains,  improving  crisis  response  capabilities  for  supply  chain  disruptions,  sharing  information  and  best practices on supply chain opportunities and vulnerabilities, facilitating business matching and investments, supporting MSMEs, facilitating Joint Research & Development, promoting supply chain resilience in critical sectors and key goods, and promoting labour rights and workforce development across IPEF supply chains.

(b) IPEF Pillar-III (Clean Economy) Agreement is expected to facilitate inward foreign investment with a focus on renewable energy and other environmentally friendly technologies. The Pillar emphasizes various initiatives to encourage private sector investment in climate-friendly projects including through the launch of IPEF Clean Economy Investment Forum and the IPEF Catalytic Capital Fund. The Pillar also  emphasizes  commitments  to  diversify  supply  chains,  helping  India  avert  disruptions  and  reduce dependence on sole suppliers for inputs such as critical minerals.

IPEF Pillar-IV (Fair Economy) Agreement envisages improvement in ease of doing business, enhancing  investor  confidence  by  providing  a  transparent  and  predictable  ecosystem  for  businesses, supporting  asset  recovery  by  streamlining  procedures  across  partner  jurisdictions,  and  strengthening cross-border investigations and prosecutions and further global resolve to fight against corruption, money laundering and terror financing.

Agreement  on  the  Indo-Pacific  Economic  Framework  for  Prosperity  establishes  Ministerial mechanisms, which would monitor work under the Agreements negotiated under the IPEF Pillars, with a view to identifying ways to reduce duplication and potential conflicts and enable work between or across those agreements.

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