India faces significant challenges regarding its participation in both the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). India’s initial decision to withdraw from RCEP in 2019 stemmed from concerns over trade imbalances, particularly with China, and the potential influx of cheap goods that could harm local industries, especially agriculture and manufacturing. These fears were further fueled by the uncertainty over rules of origin, which could allow goods from non-member countries to enter India without tariffs
Source:- bbc news
However, there is a growing debate about the potential benefits of India joining these agreements. B.V.R. Subrahmanyam, the CEO of NITI Aayog, has emphasized that India’s inclusion in both RCEP and CPTPP could open up significant opportunities. For instance, joining RCEP could help India access larger markets across Asia-Pacific, benefiting small businesses and boosting exports. It could also strengthen India’s “Make in India” initiative by providing easier access to raw materials and better trade competitiveness
Source:- news 18
Furthermore, the CPTPP’s stringent environmental and labor standards could offer India the chance to improve its governance and attract foreign investment, especially in technology and infrastructure
India’s current trade policies, including high tariffs, hinder its integration into global supply chains. By reducing tariffs and improving market access through RCEP and CPTPP, India could enhance its global competitiveness, attract more foreign investment, and share technological knowledge with advanced economies like Japan and South Korea
These considerations suggest that India must weigh the strategic benefits of deeper economic integration against the risks to local industries, as it reconsiders its stance on these critical trade agreements.
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