Indo-Pacific Economic Framework for Prosperity (IPEF)

Why in news?

• Indo-Pacific Economic Framework for Prosperity (IPEF) is going to organise Clean Economy Investor Forum in Singapore.

About

• The Forum will have opportunities for the Indian industry in the two following tracks.
• Climate Tech Track: Under this track the Forum is holding an open call that aims to recognise the top climate tech companies and start-ups among the member countries and present them to global investors.
• Infrastructure Track: Under this track, India will showcase selected investible sustainable infrastructure projects. The sectors of focus are-energy transition, transport and logistics, waste management/waste to energy.
• The Department of Commerce is the nodal agency for the IPEF engagements, and the IPEF Clean Economy Investor Forum is managed by Invest India, India’s National Investment Promotion Agency.

About IPEF

• It was launched in 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.
• It 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 comprises four pillars of cooperation namely: Trade, Supply Chain, Clean Economy and Fair Economy.
• The IPEF Clean Economy Investor Forum is one of the initiatives under the IPEF.
• It brings together the region’s top investors, philanthropies, financial institutions, innovative companies, start-ups and entrepreneurs.
• The Forum aims to mobilize investments into sustainable infrastructure, climate technology and renewable energy projects.

Significance of Indo Pacific Region

• The Indo-Pacific is home to more than half of the world’s people and nearly two-thirds of the world’s economy.
• The Persian Gulf produces nearly one third of the world’s oil and holds over half of the world’s crude oil reserves, as well as a significant portion of the world’s natural gas reserves.
• The region also produces some of the world’s most critical minerals.
• About 60 percent of the world’s maritime trade goes through the region, which also has nine out of the world’s top ten ports.
• The Indo-Pacific has thus become the global centre of interest in the recent past with a number of countries publicly articulating their approaches and strategy towards the region.

Strategic Military Infrastructure Upgrade in Andaman & Nicobar Islands

Why in news?

• Recently, the Andaman and Nicobar Islands saw a major military infrastructure upgrade with revamped airfields to a robust surveillance infrastructure.

Geostrategic Significance of Andaman and Nicobar Islands:

• The islands’ strategic location enables India to play an important role in the region, both in disaster situations and in dealing with maritime security threats.
• With these islands as their base, India, in concert with other countries, can be a net security provider to the region and the Sea Lines of Communication (SLOCs).
• The islands give India a commanding position over the considerable traffic that flows to and fro between the Andaman Sea (Indian Ocean) and South China Sea (Pacific Ocean) through the Malacca Strait.
• The Andaman and Nicobar Command (ANC) is the first and only tri-service command in the islands and was established in 2001.

Economic Potential:

• The Andaman and Nicobar Islands constitute just 0.2% of India’s landmass but account for 30% of the country’s 200-nautical-mile Exclusive Economic Zone (EEZ).
• The blue economy of this island will have an important contribution to the development of India’s economy.

Strategic Military Infrastructure Upgrade:

• Revamped Airfields and Jetties: Work on increasing the length of an airstrip at a vital naval air station is being carried out in phases to enable landing of larger aircraft like P8Is and fighter jets.
• The jetty at this location is also being enlarged to accommodate bigger ships.
• Additional Logistics and Storage Facilities: The improved infrastructure is aimed to facilitate deployment of additional military forces, facilities for larger and more warships, aircraft, missile batteries, and troops.
• It includes plans to expand the runway to nearly 3,000 metres and creation of infrastructure for maintenance of assets.
• Habitat for Troops: There are plans to significantly enhance the surveillance infrastructure at one of the northern islands of A&N, and to construct a permanent habitat for troops in the Islands.
• Robust Surveillance Infrastructure: The ongoing large-scale construction activities come amid growing Chinese attempts to expand its influence in the region, which includes construction of a military facility at Myanmar’s Coco Islands lying 55 km north of A&N Islands.

Major Challenges and Issues

• Ecological Impact of Development Projects: Developmental Projects pose a grave threat to the islands’ fragile ecosystem and the Particularly Vulnerable Tribal Groups (PVTGs) inhabiting these islands.
• Protection of Indigenous Tribes: Protecting indigenous tribes, preserving the fragile ecology, providing basic amenities such as drinking water, and preventing illegal migration and encroachments are some of the main challenges confronting Andaman & Nicobar Islands.
• Infrastructure and Industrialisation Challenges: The islands face infrastructure challenges, including slow and interrupted internet speed, transportation bottlenecks, lack of skilled manpower, low population density, scattering of population in scattered islands, lack of market, and lack of raw materials.
• Climate Change Vulnerability: The islands’ unique ecosystems are vulnerable to climate change events and anthropogenic developments.
• Key sectors such as forests and biodiversity, coastal ecosystem and marine resources, agriculture and animal husbandry, fisheries, water resources, and energy are all vulnerable to climate change.

Conclusion

The Andaman and Nicobar Islands are of great strategic importance to India, serving as a significant point for trade, commerce, and strategic cooperation.

These are a core component of India’s Act East Policy that aims to promote economic cooperation, cultural ties, and develop strategic relationships with countries in the Asia-Pacific region through continuous engagement at bilateral, regional, and multilateral levels.

The strategic military infrastructure upgrade in the Andaman and Nicobar Islands is a significant step towards strengthening India’s defence capabilities and maintaining a strong presence in the region.

The development of these islands must be carried out responsibly, keeping in mind the need to protect their unique ecology and indigenous populations.