MSMEs To Benefit From Indo-Pacific Economic Framework Agreements On Clean And Fair Economy

ENA MSME 2024-09-23 16:35:50 New Delhi, Sep 23 (KNN) In a significant move towards regional economic cooperation, India has signed crucial agreements under the Indo-Pacific Economic Framework (IPEF) focusing on Clean Economy and Fair Economy. The signing ceremony took place on Saturday during Prime Minister Narendra Modi's visit to Delaware, USA, for the Quad Summit. The Clean Economy Agreement, falling under Pillar-III of IPEF, aims to boost technical cooperation, enhance workforce development, and increase investment in climate-friendly technologies. It also facilitates project financing and joint collaborative projects, with a particular focus on supporting MSMEs and aiding Indian companies in integrating into global value chains. Key initiatives include the IPEF Catalytic Capital Fund and the IPEF Accelerator, designed to support green energy and climate resilience projects. Earlier this year, at the Investor Forum in Singapore, IPEF partners identified investment opportunities worth USD 23 billion in infrastructure projects. India's share in this amounts to USD 4 billion, primarily focused on renewable energy. Notably, Singapore-based Sembcorp has committed Rs 36,238 crore to establish a green ammonia plant in Thoothukudi. The Fair Economy Agreement, under Pillar-IV of IPEF, focuses on enhancing transparency and predictability in trade and investment across the Indo-Pacific region. It aims to combat corruption, improve tax transparency, and facilitate asset recovery. This agreement is expected to support India's efforts to curb money laundering and terror financing while strengthening cross-border investigations and tax administration. Alongside these specific agreements, an Overarching IPEF Agreement was signed to create a high-level ministerial oversight framework, guide the implementation of IPEF agreements, and promote long-term cooperation. This agreement aligns with India's Atmanirbhar Bharat vision, aiming to strengthen productive capacity, integrate supply chains, and promote innovation. India has now fully engaged with the IPEF framework's economic pillars, having previously ratified the Supply Chain Resilience Agreement (Pillar II) earlier in 2024. The country maintains observer status in the Trade Agreement (Pillar I). The Clean Economy Agreement is expected to boost investment through platforms like the IPEF Catalytic Capital Fund, which has received an initial USD 33 million from Australia, Japan, Korea, and the USA. Additionally, the PGI Investment Accelerator has secured USD 300 million in funding from the United States International Development Finance Corporation (DFC), focusing on energy transition and climate investments. IPEF's role in capacity building is highlighted by the IPEF Upskilling Initiative, which has provided 10.9 million digital skills opportunities in partner countries, including 4 million in India, primarily benefiting women and girls. India's participation in IPEF, which was launched in May 2022, aims to foster economic cooperation and stability across 14 countries in the Indo-Pacific region, with a focus on advancing growth and prosperity. A government official present at the signing event stated, The IPEF agreements will drive investment in clean technologies and further India's efforts to combat corruption and ensure transparency in the Indo-Pacific region. (KNN Bureau) 39376 https://knnindia.co.in/news/newsdetails/msme/msmes-to-benefit-from-indo-pacific-economic-framework-agreements-on-clean-and-fair-economy 2024-09-23 16:35:50 knnindia.co.in MSMEs To Benefit From Indo-Pacific Economic Framework Agreements On Clean And Fair Economy