India Signs Important Agreements on Clean Economy and Fair Economy
Delhi Development Body Allows Private Firms to Buy Flats in Bulk
Prime Minister Narendra Modi’s visit to Delaware, USA for the Quad Summit has resulted in India signing crucial agreements related to the Clean Economy and Fair Economy. These agreements, part of the Indo-Pacific Economic Framework (IPEF), represent a significant step forward in promoting green technology, energy transition, and anti-corruption initiatives, showcasing India’s growing role in the economic development of the Indo-Pacific region.
Clean Economy Agreement: Boosting Climate-friendly Technologies
As part of Pillar III of the IPEF, the Clean Economy Agreement focuses on enhancing technical cooperation, workforce development, and investment in climate-friendly technologies. By facilitating project financing and collaborative projects, the agreement particularly targets micro, small, and medium enterprises (MSMEs) in an effort to help Indian companies better integrate into global value chains. Key initiatives under this agreement include the IPEF Catalytic Capital Fund and the IPEF Accelerator, both earmarked to support green energy and climate resilience.
Investment Opportunities and Commitments in Renewable Energy
Earlier this year, during the Investor Forum held in Singapore, IPEF partners identified investment opportunities totaling Rs 1.91 trillion for infrastructure projects. Out of this, Rs 332 billion is dedicated to renewable energy projects in India. This recognition and investment indicate the growing importance of India’s potential in renewable energy and sustainable development.
One notable commitment comes from Singapore-based Sembcorp, which has pledged a significant amount of Rs 362.38 billion to establish a green ammonia plant in Thoothukudi. Such investments contribute to India’s efforts to transition to cleaner sources of energy and reduce its carbon footprint.
Fair Economy Agreement: Promoting Transparency and Accountability
Under Pillar IV of the IPEF, the Fair Economy Agreement aims to enhance transparency and predictability in trade and investment across the Indo-Pacific region. It emphasizes combating corruption, improving tax transparency, and facilitating asset recovery. This agreement bolsters India’s initiatives in combatting money laundering and terror financing while also strengthening cross-border investigations and tax administration.
The agreement will help create mechanisms to tackle corrupt practices, ensuring a level playing field for businesses and investors in the region. By focusing on tax transparency and asset recovery, it reduces the risk of financial violations and promotes fair economic practices across borders.
India’s Role in Indo-Pacific Economic Development
India’s active participation in the Quad Summit and the signing of these important agreements signify the country’s commitment to sustainable economic growth and collaboration with its regional partners. As an emerging force in the Indo-Pacific, India is leveraging its technological prowess and commitment to clean energy to shape the economic landscape in the region positively. These agreements offer a platform for knowledge exchange, technical cooperation, and investment opportunities to make India a crucial driver of the clean and fair economy in the Indo-Pacific.
In conclusion, the signing of the Clean Economy and Fair Economy agreements through the Indo-Pacific Economic Framework highlights India’s dedication to green technology, energy transition, anti-corruption initiatives, and upholding fair economic practices. These agreements will propel India’s role in the Indo-Pacific’s economic development and provide opportunities for Indian companies to integrate into global value chains. With growing investment in renewable energy and increased transparency, India is poised to be an influential player in shaping a sustainable and fair economy in the region and beyond.
