NEW DELHI: India is keeping a careful watch on trade negotiations under the Indo-Pacific Economic Framework (IPEF), while evaluating gains that may accrue by joining the talks. At the same time, it is aggressively pursuing a balance of goods trade with Asean and seeking greater opening up of the services sector by Australia as part of the proposed FTA.
In case of Asean, government is wary of Beijing’s influence in the region, given the massive jump in imports into the trading bloc and a surge in investments, which could actually result in more Chinese goods entering India through the region. government sources said at the moment, the focus of the review is on goods trade and services will be taken up later.
While things have moved slowly in the case of Asean, there is rapid progress on IPEF front. The group, comprising 14 countries including India, the US, Japan, South Korea, Australia, and Asean members, has managed to move forward on work to strengthen supply chains.
Critical minerals, especially batteries, have emerged as key focus areas, with an assessment being done by the member countries. Separately, chemicals, semiconductors, and healthcare have been identified as other focus areas, a senior official said.
A crisis response network has also been set up where members are working out arrangements to ensure that they come to the aid of others in case of a natural calamity, pandemic, or other crises. Post-Covid, IPEF was set up to work out arrangements in a way that there was lower dependence on China.
While the member nations have agreed on three pillars (supply chains, clean economy and fair economy), agreeing on the fourth (trade), has proved to be tougher.