India and US Solidify Economic Ties with IPEF Agreements

2024-09-23 03:35:01.700000

On September 23, 2024, during a pivotal meeting at the Quad Summit in the United States, Prime Minister Narendra Modi and US President Joe Biden finalized significant agreements under the Indo-Pacific Economic Framework (IPEF). These agreements included the 'Clean Economy Agreement,' which promotes technical cooperation and clean energy technologies, and the 'Fair Economy Agreement,' aimed at establishing a transparent trade environment and combating corruption. Additionally, an overarching IPEF agreement was established to provide political oversight for these individual agreements. [af961011]

The agreements, which were approved by India's Union Cabinet earlier in September 2024, reflect a deepening commitment to economic collaboration between the two nations, which collectively represent about 40% of global GDP. The Clean Economy pact focuses on enhancing energy security and reducing reliance on fossil fuels, while the Fair Economy agreement emphasizes transparency and anti-corruption in trade practices. [c6e8f83f]

This meeting builds on previous discussions held in Delaware on September 22, where Modi and Biden also addressed synthetic drug trafficking and public health initiatives. Notably, a financial commitment of $50 million from the Development Finance Corporation to Panacea Biotech for vaccine production was announced, highlighting the importance of health cooperation between India and the US. [c6e8f83f]

Earlier in the year, India had signed agreements under Pillar II on supply chain resilience in February 2024 and opted for observer status in the trade talks under Pillar I of the IPEF. Launched by President Biden in May 2022, the IPEF includes 14 member nations and focuses on fostering economic resilience and sustainability in the Indo-Pacific region. [ec7377ad]

India's engagement in cooperative work on carbon markets under the IPEF is also noteworthy, with the Ministry of Power overseeing its participation. The country is exploring additional cooperative work programs on clean electricity and sustainable aviation fuel, although concerns have been raised regarding the potential impact of international commitments on India's domestic regulations. [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]

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