The launch of the Indo-Pacific Economic Framework (IPEF) in Tokyo on the eve of the Quad summit is an effort to systemically establish an open, rules-based partnership for economic growth that is a prerequisite for geopolitical sure-footedness.
Conceived by the Joe Biden administration, it provides an alternative to China's commercial clout in the region. For India, this is an opportunity to build its capacities, focus on strengthening its role in global supply chains and bringing prosperity to its own backyard.
The 13-member IPEF aims to foster innovation that will drive economic transformation, particularly in clean energy, digital and technology sectors. Its role is still sketchy. But what it is not is a tariffs-based trade deal. Instead, its aim is to find common creative solutions to the region's economic challenges.
The benefits of belonging to a grouping that is purportedly 'writing new rules for the 21st century' for an economy on the cusp - and trying to dodge the 'middle-income trap' - such as India is compelling. Though not a traditional free trade deal focused on tariff rationalisation and reductions, high standard rules and standards will set India the right, global standards.
Narendra Modi emphasised three Ts - trust, transparency, timeliness - crucial to the IPEF project. Alliteration must now translate into action. Facilitating 'China Plus One' is, indeed, a raison d'etre for the group. But Biden's first presidential trip to Asia also underlined that IPEF was not a remixed version of the Trans-Pacific Partnership (TPP) that his predecessor pulled out of for domestic pushbacks. For India, the inclusion of 'Indo' in 'Indo-Pacific' should be made to yield extra, so as to translate into much more than a label change.
Conceived by the Joe Biden administration, it provides an alternative to China's commercial clout in the region. For India, this is an opportunity to build its capacities, focus on strengthening its role in global supply chains and bringing prosperity to its own backyard.
The 13-member IPEF aims to foster innovation that will drive economic transformation, particularly in clean energy, digital and technology sectors. Its role is still sketchy. But what it is not is a tariffs-based trade deal. Instead, its aim is to find common creative solutions to the region's economic challenges.
The benefits of belonging to a grouping that is purportedly 'writing new rules for the 21st century' for an economy on the cusp - and trying to dodge the 'middle-income trap' - such as India is compelling. Though not a traditional free trade deal focused on tariff rationalisation and reductions, high standard rules and standards will set India the right, global standards.
Narendra Modi emphasised three Ts - trust, transparency, timeliness - crucial to the IPEF project. Alliteration must now translate into action. Facilitating 'China Plus One' is, indeed, a raison d'etre for the group. But Biden's first presidential trip to Asia also underlined that IPEF was not a remixed version of the Trans-Pacific Partnership (TPP) that his predecessor pulled out of for domestic pushbacks. For India, the inclusion of 'Indo' in 'Indo-Pacific' should be made to yield extra, so as to translate into much more than a label change.
( Originally published on May 23, 2022 )
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