The Indo-Pacific Economic Framework (IPEF) is a strategic alliance launched by US President Joe Biden, comprising 14 countries from the Indo-Pacific region. Designed as a counterbalance to China’s growing influence, the IPEF aims to establish a common set of rules and standards centered around four key pillars: connectivity and digital trade, resilient supply chains, clean energy, and corruption-free fair trade.

By forming alliances with member countries, the US seeks to bolster its economic leadership in the region, expand regional connectivity, and promote its economic and foreign policy interests. However, India has chosen to opt out of the IPEF’s trade pillar due to sensitive issues surrounding digital economy regulations, labor and environment standards, and the need to consolidate domestic policies. While India remains open to discussions on the other three pillars, it is cautious about decision-making and mandatory commitments.

President Biden may convince Indian Prime Minister Narendra Modi to join the trade pillar and expedite consent for the remaining pillars. But, would India join the alliance? In this video, businessline’s Amiti Sen explains the intent of the US behind the IPEF initiative and India’s position on the four pillars of the agreement.

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