Japan urges India to join Indo-Pacific Economic Framework's Trade Pillar

Japan is encouraging India to join the Indo-Pacific Economic Framework (IPEF) Trade Pillar that also includes the digital economy. PM Narendra Modi has been a strong votary of the digital economy.

Japanese negotiator in IPEF Yamashita Takanari who was in India last week to participate in the second round of the IPEF negotiations told ET that Narendra Modi has announced to launch 'Digital Public Infrastructure Task Force' at G20 and IPEF Trade Pillar has digital economy as one of its key pillars and therefore India should consider joining the IPEF Trade Pillar.

Yamashita informed that intensive negotiations were held here reflecting the diversity of countries in IPEF, including the Global South. "Japan and India will bridge 'Global South', G7 countries, and IPEF countries". Japan is the host for the G7 Summit this year.

India is active to diversify sources for procuring APIs and solar panels. Broadening ties with LMCs in IPEF will broaden alternative choices for procurement both in peace time and when a supply chain disruption happens, Yamashita pointed out.

India hosted the second round of negotiations of IPEF last week. There were negotiations on three of the four pillars under IPEF - supply chain, clean economy, and fair economy. India has decided to stay out of the trade pillar for now as a broad consensus has not emerged on issues pertaining to labour, environment, digital trade, and public procurement. The first negotiating round took place in Australia's Brisbane in December, which focused on the trade pillar.