PM Modi confirms India’s addition to Indo-Pacific Economic Framework for Prosperity

Indo-Pacific Economic Framework for Prosperity was launched on Monday even as India made an 11th hour entry into its fold. There are 11 other nations, apart from India and the United States, in the Framework (IPEF) that has a stated objective of strengthening economic linkages among participating nations. However, its underlying purpose would be to counter China’s growing economic influence in the region.

The roll out of the Framework is a part of Washington’s efforts to push forward a strong economic agenda for the Indo-Pacific to tackle China’s aggressive strategy on trade in the region. India joined the group at the eleventh hour after the United States modified the text of the agreement to assuage New Delhi’s concerns.

“IPEF is a declaration of a collective desire to make the Indo-Pacific region an engine of global economic growth. India has historically been at the centre of trade flows in this region, having the world’s oldest commercial port in Lothal, Gujarat,” Prime Minister Narendra Modi said at the Framework’s launch in Tokyo which was also attended by US President Joe Biden and Japanese Prime Minister Fumio Kishida.

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Other members in the partnership are Australia, Brunei Darussalam, Indonesia, Japan, South Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, and Vietnam. The region represents 40 per cent of the world’s GDP.

The Ministry of External Affairs said the IPEF sought to strengthen economic partnership amongst participating countries with the objective of enhancing resilience, sustainability, inclusiveness, economic growth, fairness and competitiveness in the Indo-Pacific region.

“The Indo-Pacific region is the centre of manufacturing, economic activity, global trade and investment. The foundation of resilient supply chains must be 3Ts: Trust, Transparency and Timeliness,” Modi said.

With 60 per cent of the world’s population, the Indo-Pacific is projected to be the largest contributor to global growth over the next 30 years. The partnership, according to a White House statement, will enable the US and its allies to decide on rules of the road.

A joint statement issued after the Framework’s launch said: “We share a commitment to a free, open, fair, inclusive, interconnected, resilient, secure, and prosperous Indo-Pacific region that has the potential to achieve sustainable and inclusive economic growth.”

New Delhi confirmed Modi’s participation at the launch of the IPEF on Sunday after days of hectic parleys between Indian and US officials. India agreed to be part of the event after the US changed the text of the formal announcement to reflect that it was still at the stage of consultation, and it would remain open for other nations to join later.

“We acknowledge our economic policy interests in the region are intertwined, and deepening economic engagement among partners is crucial for continued growth, peace, and prosperity,” noted the joint statement.