Pick-and-choose Indo-Pacific economic framework:

GS Paper 2:

Topics Covered: Effects of policies of developed nations.

Context:

The United States sees India’s participation in the Indo-Pacific Economic Framework (IPEF) as “very important”.

• Therefore, Washington is designing the framework to prioritise “flexibility and inclusion”.
• Under this, participating countries can join IPEF without necessarily joining all the four pillars of the framework — a pick-and-choose arrangement that could make India more open to coming on board.

About IPEF:

• Announced in 2021, the IPEF aims to set regional standards for cooperation, and includes the Association of Southeast Asian Nations (ASEAN) member states.
• The Framework is the Biden administration’s answer to questions about the United States’ economic commitment to the vital Indo-Pacific region.
• IPEF is created to encourage regional economies to “decouple” from the Chinese market by leading them to alternative supply chains.

The IPEF will consist of four “pillars” of work:

• Fair and resilient trade (encompassing seven subtopics, including labor, environmental, and digital standards).
• Supply chain resilience.
• Infrastructure, clean energy, and decarbonization.
• Tax and anti-corruption.

Strategic significance of Indo-Pacific region for India:

Strategic significance: The Indo-Pacific is a multipolar region that accounts for over half of global GDP and population.

Mineral Resources: Maritime regions have also become important storage areas for essential resources such as fish stocks, minerals, and offshore oil and gas.

Economic Growth: The Indo-Pacific area accounts for approximately 60% of world GDP, making it the most important contributor to global growth.

Commerce: Many of the world’s most important choke points for global trade are located in this region, including the Straits of Malacca, which are crucial for global economic growth.

Insta Curious:

The UK, US and Australia, in 2021, announced a historic security pact in the Asia-Pacific, in what’s seen as an effort to counter China. It is called the AUKUS pact and AUKUS alliance. What is it? Reference: read this.

InstaLinks:

Prelims Link:

1. About Pacific Region.
2. Overview of Indian Ocean Region.
3. Important straits, bays and passes in these regions.

Mains Link:

Discuss the strategic significance of Indo- Pacific region for India.

Q.4) Malacca Strait connects South China Sea with:

1. North China Sea.
2. Andaman Sea.
3. Both A and B.
4. None of the above. 

Sources: Hindustan Times.