Tag: Economic Framework

The India Opportunity Showcased at the IPEF Clean Economy Investor Forum

 On the sidelines of the inaugural Indo-Pacific Economic Framework for Prosperity (IPEF) Clean Economy Investor Forum, the Department of Commerce and Invest India organised a meeting to showcase various investment opportunities in India.

 

 

In his inaugural address Secretary, Department of Commerce, Shri Sunil Barthwal, stressed on how India’s growth rate is nearly double that of other emerging market economies. He remarked on how this strong growth is also leading to a trend of ‘reverse flipping’, where Indian start-ups that once moved abroad for capital access and tax benefits are now returning home. He emphasised how the digital economy along with emerging technologies like AI and rise of data centres were key to future Indian growth.

The meeting held at Marina Bay Sands, Singapore, attracted over 60 participants, including global investors from the US, Singapore, Japan, Australia, Korea, and other countries, as well as India’s private sector and government officials. The event brought together investors and financial institutions from IPEF Member countries like that of Temasek, Global Infrastructure Partners, GuarantCo, Private Infrastructure Development Group (PIDG), Goldman Sachs, I Squared Capital, Mizuho Bank Ltd, Advantage Partners, Nomura, DBS Bank and Citi Bank. The   Indian infrastructure and climate tech companies showcased their solutions and engaged with international investors to tap into global markets.

Indian High Commissioner to Singapore, H.E. Dr. Shilpak Ambule, focused on the fundamentals that are driving Indian growth. He said that the investment in physical and digital infrastructure will have multiplier effects on the Indian economy, and that the legislative and regulatory changes have created a pro-market field, providing conducive and predictable policy environment. He stressed on how shifting global supply chains and Indian efforts modernization of infrastructure will enable India to participate in them.

This was followed by an India opportunity presentation in which Invest India showcased the India’s through various government flagship initiatives like a flourishing startup ecosystem, a sizable pool of skilled and talented professionals across diverse industries, a push for investments in infrastructure projects, policy reforms aimed at streamlining regulations, enhancing transparency, and improving Ease of Doing Business.

MD and CEO of Invest India, Ms Nivruti Rai highlighted that India is keen on collaborating with investors, clean economy firms, and innovative startups to drive sustainable infrastructure, climate technology, and renewable energy projects to meet Net Zero targets.

Speaking during the fireside chat titled the Charting India Opportunity, Ms Radhika Rao, Senior Economist and Executive Director, mentioned that India strength is in 4C’s – Consistency & Continuity in Policy and reforms; Increasing Capex through government, household spending and private sector; Composition of trade shifting towards manufacturing sectors; Increasing consumption over the next 5 years.

Ms Sonal Varma, Managing Director, Nomura spoke in detail about the Nomura India report. The report shows that highest number of companies are looking at India than any other geography during their “Bottom’s up” study, a survey of around 130 companies mapping their investments in sectors and country.  India is attracting investments in broad based sectors ranging from semiconductor assembly to testing, automobiles to capital goods.

Mr Kunal Agarwal, Managing Director, I Squared highlighted that India is going through Infrastructure Supercycle, which is an enabler for digital revolution and India is viewed as a secular investment opportunity.

During the event, members of the industry expressed highlighted that the inaugural forum was a significant step forward in promoting economic cooperation in the Indo-Pacific region. They emphasized the importance of industries working together to address the challenges they faced and create new opportunities for growth. The forum also underscored the crucial nature of a clean economy and supply chain resilience.

About IPEF and Clean Economy Investor Forum

The Indo-Pacific Economic Framework for Prosperity (IPEF) was launched in May 2022 and currently includes 14 partners – Australia, Brunei Darussalam, Fiji, India, Indonesia, Japan, the Republic of Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, United States and Vietnam. The IPEF, comprising four pillars of cooperation, namely Trade, Supply Chain, Clean Economy and Fair Economy, provides a platform for countries in the region to collaborate on advancing resilient, sustainable, and inclusive economic growth and aims to contribute to cooperation, stability and prosperity in the region.

The IPEF Clean Economy Investor Forum, one of the initiatives under the IPEF, brought together the region’s top investors, philanthropies, financial institutions, innovative companies, start-ups and entrepreneurs to mobilise investments into sustainable infrastructure, climate technology and renewable energy projects.

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Indo-Pacific Economic Framework for Prosperity (IPEF)

 The third Indo-Pacific Economic Framework for Prosperity (IPEF) Ministerial Meeting was held in San Francisco, California on 14 November 2023 hosted by the US. Union Minister for Commerce and Industry, Consumer Affairs, Food and Public Distribution, and Textiles, Shri Piyush Goyal participated in the Ministerial meeting.

IPEF was launched jointly by the USA and other partner countries of the Indo-Pacific region on May 23, 2022 at Tokyo. IPEF has 14 partner countries including Australia, Brunei, Fiji, India, Indonesia, Japan, Republic of Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, Vietnam & USA. It seeks to strengthen economic engagement among partner countries with the goal of advancing growth, peace and prosperity in the region.

The framework is structured around four pillars relating to Trade (Pillar I); Supply Chains (Pillar II); Clean Economy (Pillar III); and Fair Economy (Pillar IV). India had joined Pillars II to IV of IPEF while it has an observer status in Pillar-I.

At this Ministerial Meeting, negotiations under the IPEF Pillar-III (Clean Economy), Pillar IV (Fair Economy) and the Agreement on the Indo-Pacific Economic Framework for Prosperity (which seeks to establish a ministerial-level council and a commission) were substantially concluded. Moreover, following the substantial conclusion of the negotiations on the IPEF Supply Chain Agreement in May 2023, the IPEF Ministers signed the IPEF Supply Chain Agreement during the Ministerial Meeting. Pillar-wise Press Statement was issued at the end of the San Francisco Ministerial meeting highlighting the contours and the efforts planned under each of the substantially concluded Pillars (link below).

Under the Clean Economy (Pillar-III), IPEF partners are aiming to advance cooperation on research, development, commercialization, availability, accessibility, and deployment of clean energy and climate friendly technologies, and facilitate investment towards climate-related projects in the region. During his intervention under this Pillar, Shri Goyal emphasized the need for increased collaboration among partners on research and development of innovative and affordable climate friendly technologies. Further, Shri Goyal stressed the need to prioritize implementation of Cooperative work programmes envisaged under this pillar, including hydrogen supply chain initiative and other proposals in the pipeline such as India’s proposal for biofuels and e-waste recycling.

Under the Fair Economy (Pillar-IV), IPEF partners aim to strengthen implementation of effective anti-corruption and tax measures to boost commerce, trade, and investment among IPEF economies. During his intervention under this Pillar, Shri Goyal highlighted enhancing information sharing among partners, facilitating asset recovery and strengthening cross-border investigations and prosecutions as the key benefits to emerge from the Agreement. Further, he highlighted that this will strengthen the joint resolve to fight against corruption, money laundering and terror financing.

* Link to Pillar II-IV San Francisco IPEF Statement

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