The IPEF comprises ASEAN countries Brunei, Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam, as well as the US, Australia, and Japan, India’s quad partners, South Korea, New Zealand, and Fiji. With these nations collectively contributing to about 40% of the global GDP, IPEF is a powerful economic alliance.
Source: The Economic Times- India Times
Interestingly, a few of these countries are also involved in the Regional Comprehensive Economic Partnership (RCEP), a trade effort led by China that India had chosen to leave four years prior. The IPEF, which was introduced in May 2022, is viewed by many as a US-led opposition to the RCEP, which is billed as the largest trade deal in history.
The Covid-19 outbreak caused widespread disruptions to supply networks, exposing the weaknesses in the world economy. Things have gotten worse due to the Israel-Hamas conflict and the Russia-Ukraine war. Furthermore, suppliers and manufacturers are continuously at danger of financial loss as a result of natural disasters brought on by climate change.
Source: WION
The IPEF must guarantee that its members continue to engage in trade. The IPEF can best serve New Delhi’s interests by making it a more desirable location for investments and a more significant player in the export market. India’s main challenges are to increase commercial ease of doing business, transparently implement regulations, and promote sustainable growth. The IPEF bears the responsibility of facilitating the smooth integration of economies and preventing it from turning into a US-centric endeavour. The IPEF is supported by four key pillars: trade, supply chains, the clean economy, and the fair economy.
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