IPEF Supply Chain Pact To Diversify Indo-pacific Supply Chains
Commerce and Industry Minister Piyush Goyal emphasised the importance of the supply chain agreement agreed by the 14 members of the Indo-Pacific Economic Framework for Prosperity (IPEF) in a statement to Parliament on Friday.
Improving the Indo-Pacific region's supply chains' security, diversity, efficiency and resilience is the main goal of this pact. In a letter to the Rajya Sabha, Minister Goyal explained that the deal aims to create institutional frameworks that will promote cooperation between the 14 participating nations.
These cooperative initiatives are especially meant to tackle supply chain issues in vital industries and necessities.
On 14 November 2023, the Indo-Pacific Economic Framework for Prosperity Agreement Relating to Supply Chain Resilience was formally signed by the IPEF countries, including India.
The IPEF itself was jointly launched by the United States and other partner nations in the Indo-Pacific region on May 23 in Tokyo. Notably, the 14 IPEF partners collectively represent a substantial 40 per cent of global GDP and contribute to 28 per cent of global goods and services trade.
Structured around four foundational pillars encompassing trade, supply chains, a clean economy and fair economy (incorporating issues such as taxation and anti-corruption), the framework is comprehensive in its approach.
Minister Goyal described the IPEF Supply Chain Agreement as a pioneering plurilateral accord. Its overarching aim is to augment the resilience, efficiency, productivity, sustainability, transparency, diversification, security, fairness, and inclusivity of supply chains within the Indo-Pacific region.
Minister Goyal also underlined that the agreement's clean economy section is expected to encourage inward foreign investment, with a particular emphasis on renewable energy and other eco-friendly technologies.
Chairman of Hi-Tech Gears and expert in international trade, Deep Kapuria, highlighted the unique aspect of the agreement in a perceptive manner. He emphasised how the private sector has been tasked with taking the lead in building a robust and effective supply chain among the 14 participating nations.
The arrangement specifically calls for the creation of a CEO Forum with representatives from the corporate sector under the IPEF Supply Chain Council, highlighting the critical role that the private sector plays in accomplishing the goals of the agreement.
