Business

IIE digital desk: In a significant move to enhance regional cooperation, India and its Indo-Pacific partners have established new supply chain bodies under the Indo-Pacific Economic Framework (IPEF) agreement. This initiative aims to strengthen and diversify supply chains across the region, promoting resilience and economic stability.

The newly formed supply chain councils will focus on identifying and mitigating vulnerabilities, fostering collaboration among member countries, and ensuring the smooth flow of goods and services. This development comes in response to the disruptions caused by the COVID-19 pandemic and geopolitical tensions, which have highlighted the need for more robust and adaptable supply chains.

India's participation in the IPEF agreement underscores its commitment to regional economic integration and sustainable development. By working closely with key Indo-Pacific nations, India aims to enhance its manufacturing capabilities, boost exports, and create new economic opportunities.

"The establishment of these supply chain bodies marks a critical step in our collective efforts to build a resilient and secure economic environment in the Indo-Pacific region," said a senior Indian government official. "We look forward to leveraging this platform to drive innovation and growth."

This initiative is expected to foster greater economic cooperation, support sustainable development, and enhance the region's global competitiveness, paving the way for a more interconnected and prosperous Indo-Pacific.

IPEF was launched jointly by the USA and other partner countries of the Indo-Pacific region on May 23, 2022 at Tokyo. IPEF has 14 partner countries including Australia, Brunei, Fiji, India, Indonesia, Japan, Republic of Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, Vietnam & USA. It seeks to strengthen economic engagement among partner countries with the goal of advancing growth, peace and prosperity in the region.

The framework is structured around four pillars relating to Trade (Pillar I); Supply Chains (Pillar II); Clean Economy (Pillar III); and Fair Economy (Pillar IV). India had joined Pillars II to IV of IPEF while it has an observer status in Pillar-I.