Finshots Daily Should India rethink joining RCEP?
Sep 9, 2024
The discussion revolves around India's possible reevaluation of joining the Regional Comprehensive Economic Partnership. A World Bank report suggests that membership could greatly enhance India’s export goals, opening doors through reduced tariffs. However, concerns about increased imports, particularly from China, and potential impacts on domestic manufacturing and job creation are also central to the debate. The complexities and risks involved in this decision are thoroughly explored, prompting a deeper examination of India's trade dynamics.
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RCEP Overview
- RCEP is a free trade agreement simplifying trade and business between several nations, including Japan, China, and ASEAN members.
- Joining offers opportunities like reduced tariffs, access to larger markets, and simplified cross-border trade regulations.
Concerns about RCEP
- Joining RCEP would require India to open its borders to goods from member countries, raising concerns.
- This is not the first time India has considered RCEP; it opted out in 2019.
World Bank's Perspective
- The World Bank suggests RCEP membership could boost India's manufacturing sector as China shifts away from labor-intensive industries.
- This presents an opportunity for India, especially given its high urban unemployment.