India Signs Historic Clean and Fair Economy Agreements at Quad Summit
New Delhi, India – On September 22, during Prime Minister Narendra Modi’s visit to the United States for the Quad Summit, India signed groundbreaking agreements under the Indo-Pacific Economic Framework (IPEF). These agreements focus on the Clean Economy and Fair Economy.
Clean Economy Agreement
The IPEF Clean Economy Agreement aims to promote clean energy and climate-friendly technologies. It will foster technical cooperation, workforce development, and research collaborations among member nations. Key initiatives include joint collaborative projects, the IPEF Catalytic Capital Fund, and the IPEF Accelerator, which will help integrate Indian companies into global value chains.
Fair Economy Agreement
The Fair Economy Agreement aims to create a transparent trade and investment landscape across the Indo-Pacific. It focuses on combating corruption, improving tax transparency, and enhancing tax administration. This agreement will support India’s efforts against corruption, money laundering, and terrorism financing.
Additional Initiatives
An overarching IPEF agreement was also signed to establish a ministerial-level oversight mechanism. This framework will guide the various IPEF agreements and ensure effective implementation. The Union Cabinet, led by PM Modi, approved these agreements earlier this month.
Investor Forum and Green Initiatives
The inaugural Investor Forum took place in Singapore on June 5-6, 2024. During this event, a Memorandum of Understanding (MoU) was signed among companies from India, Singapore, and Japan. Singapore-based Sembcorp committed to investing Rs 36,238 crore in a green ammonia plant in Thoothukudi. The United States International Development Finance Corporation (DFC) pledged USD 1.5 billion to support energy transition and climate investments.
Funding and Upskilling
The IPEF Catalytic Capital Fund received an initial grant of USD 33 million, aiming to leverage private investments totalling USD 3.3 billion. The PGI Investment Accelerator secured initial funding of USD 300 million. The Upskilling Initiative aims to provide digital skills training, primarily to women and girls in emerging and middle-income partner countries. India has benefitted from 4 million of the 10.9 million upskilling opportunities provided in the last two years.
Other Key Initiatives
The Critical Mineral Dialogue focuses on mapping mineral resources and promoting sustainable mining practices. The Tech Council aims to enhance cooperation on critical technologies such as cyber security and artificial intelligence. The Cooperative Work Programme (CWP) has proposed eight initiatives related to hydrogen supply chains, carbon markets, and clean electricity, including India’s proposal on e-waste urban mining.
Doubts Revealed
Quad Summit -: The Quad Summit is a meeting between four countries: India, the United States, Japan, and Australia. They discuss important global issues together.
Clean Economy -: A Clean Economy focuses on using energy and technologies that do not harm the environment. This includes things like solar power and electric cars.
Fair Economy -: A Fair Economy ensures that trade and business are done in a way that is honest and transparent. This means everyone follows the same rules and no one cheats.
Indo-Pacific Economic Framework (IPEF) -: The Indo-Pacific Economic Framework (IPEF) is a group of countries working together to improve trade and economic policies in the Indo-Pacific region, which includes India and many other countries around the Indian and Pacific Oceans.
PM Modi -: PM Modi is the Prime Minister of India. His full name is Narendra Modi, and he is the leader of the Indian government.
Catalytic Capital Fund -: The Catalytic Capital Fund is a special fund that provides money to support new and innovative projects, especially those that help the environment.
PGI Investment Accelerator -: The PGI Investment Accelerator is a program that helps attract investments to support important projects, making it easier for businesses to grow and succeed.
Upskilling Initiative -: The Upskilling Initiative is a program that helps people learn new skills or improve their existing skills, so they can get better jobs and earn more money.