UPSC Current Affairs

Indo-Pacific Economic Framework for Prosperity


Indo-Pacific Economic Framework for Prosperity

  • Recently, India agreed to be a part of the Indo-Pacific Economic Framework for Prosperity (IPEF).
  • IPEF is a S.-led economic grouping comprising 12 countries.
  • These include Australia, Brunei, India, Indonesia, Japan, South Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand and Vietnam.
  • Together, these countries account for 40 per cent of the global GDP.
  • The economic framework broadly rests on four pillars: trade, supply chain resilience, clean energy and decarbonisation, and taxes and anti-corruption measures.
  1. On the trade front, the endeavour is to establish “high-standard, inclusive, free, and fair-trade commitments” to fuel economic activity and investments benefitting both workers and consumers. It also extend cooperation for enhancing digital economy and trade.
  2. Supply chain resilience, the framework aspires to secure access to key raw and processed materials, semiconductors, critical minerals and clean energy tech, particularly for crisis response measures and ensuring business continuity.
  3. The clean energy, decarbonisation and infrastructure pillar would provide technical assistance and help mobilise finance, including concessional finance, to improve competitiveness and enhance connectivity by supporting countries in the development of sustainable and durable infrastructure for adopting renewable energy.
  4. The pillar on tax and anti-corruption is aimed at promoting fair competition by enforcing robust tax, anti-money laundering and anti-bribery regimes in line with existing multilateral obligations, standards and agreements to curb tax evasion and corruption in the region.
  • Countries are free to join (or not join) initiatives under any of the stipulated pillars but are expected to adhere to all commitments once they enrol.
  • Additionally, the framework would be open to other countries willing to join in the future provided they are willing to adhere to the stipulated goals and other necessary obligations.
UPSC Prelims Model Question

Q. With reference to the Indo-Pacific Economic Framework for Prosperity (IPEF), consider the following statements :

  1. IPEF is a Chinese -led economic grouping comprising 12 countries.
  2. China and Russia are the major share holders in the grouping.

Which of the statements given above is /are correct?

a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2

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