India is under diplomatic pressure by countries like Singapore and Indonesia to agree to the ambitious Regional Comprehensive Economic Partnership (RCEP).
It is note worthy that India is fully committed to taking the talks on RCEP forward, but its benefits are equal. It is essential that this agreement is balanced among all 16 countries in order to be shared effectively.
Singapore and Indonesia have urged India not to put this agreement on hold any longer.
The total population of the countries included in RCEP is 3.5 billion and these countries contribute 30 percent of the total GDP of the world.Why is India not ready?
Most RCEP members on tariff abolition and reduction 92 are talking about levying zero duty on percentage of goods, where as India is not ready for this.
Indian industry and agriculture sector are not prepared for such drastic reduction in tariffs on most of the products as they are still in developing condition in many sectors and tariff free competition is not in their interest.
This agreement will also affect the protection of India's digital industry. Import of cheap goods into India from these countries will affect the domestic industries.
India is emphasizing on liberalisation of services, including easing norms for the movement of professionals for short-term work.
