India has decided not to join the trade pillar of the Indo-Pacific Economic Framework (IPEF) over concerns of potential restrictions on issues such as environment, labour, digital trade and public procurement.

Union Commerce Minister in a statement said that on three out of four pillars related to supply chains, tax and anti-corruption and clean energy, India was comfortable with the outcome and text and have joined the declaration. On one pillar, which deals primarily with trade, the Minister added, the contours of the framework – particularly on commitments required on environment, labour, digital trade and public procurement — are still emerging.

“We have to see what benefits member countries will derive and whether any conditionalities on aspects like environment may discriminate against developing countries who have the imperative to provide low cost and affordable energy to meet the needs of our growing economy,” the Minister said.

The trade minister also underscored that India was in the process of firming up its own digital framework and laws, particularly regarding privacy and data and said that therefore India, while continuing to engage with the trade track in the IPEF, will wait for the final contours to emerge. In the meantime, officials will be participating in the discussions with an open mind and in the best interest of the people and businesses in India, he added.

The minister said that certain responsibilities of the developed world should also be an integral part of any such agreement and that is a matter that will require deeper engagement.