India inks IPEF pact on supply chains in bid to reduce reliance on China

Sandeep Dikshit

New Delhi, November 15

India and 13 other members of the Indo-Pacific Economic Framework (IPEF) have signed a supply chain resilience agreement “that will provide benefits like potential shifting of production centres in critical sectors and mitigating risks of economic disruptions from supply chain shocks”.

The agreement was signed in San Francisco, where the IPEF is being held along with the much larger Asia-Pacific Economic Cooperation. India is being represented by Commerce Minister Piyush Goyal at the IPEF.

“India joins the US and 12 other IPEF partners to ink the IPEF supply chain resilience agreement, a first-of-its-kind international pact that will fortify and strengthen global supply chains and foster adaptability, stability and sustainability,” Goyal posted on X shortly after inking the agreement with his counterparts.

In May, an IPEF ministerial had overseen the inking of a supply chain agreement on the digital economy. Launched by US President Joe Biden in the presence of PM Narendra Modi as well as the PMs of Australia and Japan last year, the IPEF is billed as a West-led repivot to the East to counter China’s rise as the prime economic and trading power in the region.

The agreement envisages three new IPEF supply chain bodies to facilitate cooperation on supply chain issues. The first, IPEF Supply Chain Council, will establish a mechanism to develop sector-specific action plans for critical sectors and key goods to enhance the resilience of IPEF partner’s supply chains. The second, IPEF

Supply Chain Crisis Response Network, will establish an emergency communications channel to seek support during a supply chain disruption. The third, IPEF Labour Rights Advisory Board, will consist of government, workers and employer representatives on labour rights and sustainable trade and investment.