India is also the founder of the Indo-Pacific Economic Framework (IPEF), a new economic system proposed by US President Joe Biden on Monday to counter China’s growing influence in the Indian Pacific Ocean. has become a member.
This new platform (What is the purpose of Indo Pacific Economic Framework for Prosperity) aims to create a new sphere of influence in the region through integrated, thriving and clean economies. Speaking on the occasion, Prime Minister Modi said that India is committed to work with all Indo-Pacific countries for an inclusive and resilient IPEF.
PM Modi also said that the main focus area of this framework is to move towards a dynamic supply chain, to provide an alternative to China in the central aspects of the economy, the cornerstone of 3T i.e. Transparency, Trust and Timeliness. Must be based on trust, transparency and timeliness.
Earlier, US President Joe Biden, while launching the Indo-Pacific Economic Framework for Prosperity (IPEF), said in his opening statement that
We are writing new rules for the economy of the 21st century. Our vision for the Indo-Pacific is to be free and open, yet secure and resilient, where economic growth is sustainable and inclusive. We have come here to make the economies of all our partner countries grow rapidly and fairly.
The White House fact sheet states that the IPEF will provide the United States and its allies with a rules-based route to enable American small workers, small businessmen and farmers to become competitive in the Indo-Pacific region.
These 12 countries came forward with America, 40 percent of the world’s GDP
Twelve countries have agreed to move forward with the US as the initial partner countries of the Indo-Pacific Economic Framework for Prosperity (IPEF). These 12 countries are Australia, Brunei, India, Indonesia, Japan, Republic of Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand and Vietnam along with USA. It is worth noting that, as highlighted in the White House fact sheet, these 12 countries today represent 40% of the world GDP. As has been repeatedly underlined, the objective is to remove bottlenecks in the supply chain and enhance cooperation.
Why was IPEF necessary?
During the Corona period, supplies from China were disrupted and many countries had to bear the brunt. This is the reason why the whole world wants concrete alternatives. Prime Minister Narendra Modi has also said many times that a reliable supply chain is the main need of the day.
As underlined by PM Modi’s statement, with this agreement, the American and Asian economies will work together on many issues including supply chain, digital trade, clean energy. It is being said that the mutual tariff rates between the countries belonging to this group will be low. However, full details are yet to come about how these countries will benefit from each other. Describing this initiative as historic, the Indian Ministry of External Affairs said that it will strengthen economic ties among the member countries.
I enjoy drawing lines on stones: Modi
Earlier, the Prime Minister of India, Narendra Modi, while addressing the overseas Indians in Japan, said that the people-led government is working in India in the true sense today. Due to the upbringing that I have received, the values I have received, it has also become a habit for me. I don’t enjoy drawing streaks on butter. I draw a line on the stone. The Prime Minister said that the question is not about Modi, the issue is about the resolve-dream and capability of 130 crore countrymen. PM Modi said that New India is very optimistic about the future.
America’s strategy provoking: China
Chinese Foreign Minister Wang Yi reacted sharply to this entire development and especially to US President Joe Biden’s statement regarding Taiwan. Biden had said that he would intervene militarily in the event of an attack on Taiwan. Wang Yi said that America’s Indo-Pacific strategy creates division, provokes conflict and disturbs peace. Its purpose is only to erase the name of the Asia-Pacific region. Wang said that the US President would fail.