On September 22, 2024, during a bilateral meeting in Wilmington, Prime Minister Narendra Modi and President Joe Biden exchanged significant agreements that further strengthen the economic and health ties between India and the United States. These agreements included India's ratification of Pillar III (Clean Economy) and Pillar IV (Fair Economy) of the Indo-Pacific Economic Framework (IPEF), alongside the introduction of the India-US Drug Policy Framework and Memorandum of Understanding (MoU). The IPEF, launched by Biden on May 23, 2022, encompasses 14 member countries and represents approximately 40% of global GDP. Both leaders emphasized the importance of the IPEF for enhancing economic resilience and sustainability in the region. [ec420b51]
The newly established Drug Policy Framework aims to combat synthetic drug trafficking while promoting public health initiatives. This agreement comes on the heels of the first-ever U.S.-India Cancer Dialogue held in August 2024, which focused on collaborative efforts in cancer research and treatment. Additionally, the leaders discussed the Bio5 partnership aimed at strengthening pharmaceutical supply chains between the two nations. A notable financial commitment was also highlighted, with a $50 million loan from the Development Finance Corporation to Panacea Biotech for vaccine production. [ec420b51]
Earlier in the month, on September 21, India had already signed three crucial agreements under the IPEF, focusing on Clean Economy, Fair Economy, and broader IPEF collaboration. The Clean Economy Agreement is intended to enhance technical cooperation and investments in green technology, with India pledging USD 4 billion towards renewable energy projects. The Fair Economy Agreement aims to create a predictable trade environment in the Indo-Pacific, facilitating investments for Micro, Small, and Medium Enterprises (MSMEs) and integrating Indian companies into global value chains. A ministerial-level oversight mechanism has been established to monitor the implementation of these agreements. These agreements were approved by the Union Cabinet earlier in September 2024 and were signed by other IPEF members on June 6, 2024. [f02af313]
India's decision to join the cooperative work programme on carbon markets under the IPEF is also noteworthy, with the Ministry of Power and the Bureau of Energy Efficiency overseeing India's participation. The country is considering joining additional cooperative work programmes on clean electricity and sustainable aviation fuel. However, concerns have been raised regarding the potential rigidity of international commitments that could impact India's domestic regulations. Ajay Srivastava has pointed out the need for India to ensure that these agreements do not overly restrict its policy space or revenue generation capabilities. [a1902791]
In a related development, Uganda signed its fourth Country Programme Framework (CPF) with the International Atomic Energy Agency (IAEA) for the period of 2024-2029, identifying key areas for nuclear cooperation. [640b8a6f]