IPEF Ministerial Meeting: Piyush Goyal Emphasizes Economic Cooperation and Supply Chain Resilience

Minister Goyal and other IPEF Ministers commended the progress made in operationalizing the Supply Chain Agreement, which aims to create more competitive and resilient supply chains.

Union Commerce and Industry Minister Shri Piyush Goyal, along with 13 other IPEF Ministers, virtually attended the third Ministerial meeting focused on IPEF Pillar II, III, and IV. During the meeting, the Ministers celebrated the upcoming entry into force of three key agreements—the Clean Economy Agreement, Fair Economy Agreement, and the Overarching Agreement—on October 11-12, 2024. These agreements aim to deepen economic cooperation and deliver tangible benefits to member countries through ongoing collaboration.

Supply Chain Resilience

Minister Goyal and other IPEF Ministers commended the progress made in operationalizing the Supply Chain Agreement, which aims to create more competitive and resilient supply chains. Key actions include strengthening the Supply Chain Council, the Crisis Response Network, and the Labor Rights Advisory Board. Notably, India was elected Vice Chair of the Supply Chain Council, alongside the United States as Chair.

Minister Goyal stressed the importance of creating action plans for critical sectors such as semiconductors, critical minerals, and chemicals, drawing lessons from disruptions faced during the COVID-19 pandemic. He also emphasized the need for resilient supply chains for agrochemicals, citing the Global Agrochemicals Market's projected growth to USD 282.2 billion by 2028.

The Minister also highlighted the importance of building supply chain resilience in healthcare by addressing the concentration of global production of APIs (Active Pharmaceutical Ingredients) and KSMs (Key Starting Materials). Additionally, he pointed out the need to improve logistics infrastructure, aligning with Prime Minister Narendra Modi's Gati Shakti initiative.

Crisis Response Network

The Ministers emphasized the value of collaboration through the Crisis Response Network (CRN) to monitor risks and prepare for potential supply chain disruptions. A recent emergency simulation exercise was highlighted as part of the CRN's efforts to enhance real-time crisis preparedness.

Clean Economy Agreement

The Clean Economy Agreement aims to accelerate the transition towards energy security, climate resilience, and GHG emissions mitigation. Minister Goyal praised the Cooperative Work Programs (CWPs) that foster collaboration on priority topics like hydrogen, carbon markets, and small modular reactors (SMRs). India’s proposal to focus on e-waste urban mining was also well-received.

The Ministers expressed satisfaction with the successful IPEF Investor Forum held in Singapore, which provided a platform for investors and project proponents to explore climate-friendly technologies.

Fair Economy Agreement

The Fair Economy Agreement aims to strengthen anti-corruption efforts and improve tax administration, enhancing transparency and trade investment ties. Minister Goyal emphasized India's strong anti-corruption regime under the leadership of Prime Minister Modi, highlighting peer learning and capacity-building initiatives as key to achieving the Agreement's objectives.

Upcoming technical assistance programs were also discussed, including enforcement training and workshops on tax administration and anti-corruption, led by the US Department of Commerce and other global bodies.

Minister Goyal reiterated that the success of IPEF depends on each partner country contributing its strengths, including technology, investment capacity, and a skilled workforce. The Ministers committed to continuing the operationalization of key IPEF agreements and looked forward to the first meetings of the IPEF Council and IPEF Joint Commission, which will ensure sustained collaboration on supply chains, the green transition, and economic development.