IPEF supply chains pact to help shift production centres to India

India said on Thursday that the Supply Chains Agreement under Indo-Pacific Economic Framework (IPEF) is expected to bring benefits such as shift of production centres in key goods/critical sectors to the country.

The commerce and industry ministry said the IPEF will give a boost to Aatmanirbhar Bharat and production-linked incentive schemes, mobilisation of investments, integration of India in Global Supply and value chains, especially Indian MSMEs.

The pact will lead to enhanced exports from India, quicker port clearances and workforce development, the ministry said in a statement.


Negotiations for the Supply Chains (Pillar-II) Agreement were substantially concluded during the second IPEF ministerial meeting on May 27.

As per the statement, upward mobility in the value chains, mitigation of risks of economic disruptions to India from supply chain shocks and adverse events, creation of a seamless regional trade ecosystem facilitating flow of Indian products, enhanced trade facilitation, including through digital exchange of trade documentation, and joint Research and Development are the other benefits of the agreemen t.

The IPEF Supply Chains (Pillar-II) Agreement is one of the fastest ever concluded plurilateral economic cooperation Agreement.