India is waiting for clarification from the US before making a fresh pitch for Indo-Pacific Economic Framework (IPEF)
NEW DELHI: The government is exercising caution when it comes to the proposed trade pillar within the Indo-Pacific Economic Framework (IPEF). It is awaiting more information before agreeing to participate in the discussions. The US has recently made a new proposal, claiming that a deal within the IPEF could lead to increased investments in the country.
The IPEF is currently focused on four key areas: trade, supply chains, clean energy and infrastructure, as well as tax and anti-corruption. New Delhi is involved in all the pillars except for trade. Although the US has expressed its willingness to allow India to steer the direction of its engagement, the Indian government desires comprehensive information to make an informed decision before commencing deliberations.
Gina Raimondo, the US Commerce Secretary, expressed her optimism regarding American companies investing in India, stating that IPEF could provide a further boost to fund flow.
She anticipates that several of the CEOs travelling with her to the forum would make announcements regarding investment plans.
In a recently held dialogue, the minister (Piyush Goyal) and the secretary (Raimondo) stressed on the importance of bolstering economic relationships between IPEF partner countries to ensure a prosperous, peaceful and inclusive future for the Indo-Pacific region.
The joint statement issued after the meeting highlights the benefits of increased investment, improved infrastructure and connectivity, and the creation of a more sustainable economy.
The statement also emphasizes the need for stronger anti-corruption measures and improved tax administration.
In addition to reaffirming their partnership in the aftermath of the pandemic, Piyush Goyal and his American counterpart identified fresh avenues for collaboration, such as supporting MSMEs, establishing standards, and promoting mutual travel.