India signed three agreements under the Indo-Pacific Economic Framework in Delaware, USA, on 21st September 2024. The event was attended by Prime Minister, Narendra Modi, during his three-day visit to the United States to attend the Quad Summit.
These agreements, focused on clean energy, fair trade practices, and economic growth, create a transparent trade environment in the Indo-Pacific region.
The first Clean Economy Agreement is created to promote clean energy technologies to boost research, technical collaborations, and workforce development in renewable energy.
This agreement will help India achieve its climate goals by developing technologies that reduce greenhouse gas emissions and make the country more climate-friendly.
The Clean Economy Agreement is also designed to attract investments in clean energy projects and support small and medium-sized enterprises (SMEs) in India.
The IPEF Catalytic Capital Fund, which has initial funding from countries like the United States, Japan, and Australia, targets more investments into green technology. The ₹36,238 crore investment by Singapore-based Sembcorp for a green ammonia plant in Tamil Nadu is one such example.
The Fair Economy Agreement will increase India’s efforts to fight corruption and promote fair trade. This includes better tax transparency, preventing money laundering, and improving cross-border investigations.
The IPEF has identified over ₹1.91 lakh crore of prior infrastructure projects, including ₹33,200 crore from India. The United States International Development Finance Corporation (DFC) has committed ₹12,450 crore to support India’s energy transition and digital inclusion.
Lastly, the IPEF Agreement will make sure long-term cooperation between member countries, for economic growth and innovation in India. These agreements mark a significant step toward India’s goals of clean energy and economic fairness.
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