Regional Comprehensive Economic Partnership
What is RCEP?
RCEP is a proposed free trade agreement between ten ASEAN economies and its 6 other partners (India, China, Japan, Australia,South Korea and New Zealand). Which was announced at the 2012 ASEAN Summit.Out of which recently India has decided not to remain separate.
India in RCEP What are the benefits of joining?
The trade size and market of the economies of RCEP countries provides a market for the export of India's goods and services.Through RCEP, India can play an important role in the connectivity between the Pacific and Indian Ocean countries.
India could have got entry into the global supply chain through RCEP.
Join RCEP What would happen to India?
The RCEP agreement had full potential to widen the trade deficit. 'There would have been an increase in the Indian market of low-cost Chinese goods, due to which domestic goods would not be able to remain competitive.India's agricultural horticulture and dairy sectors would have been less competitive.The pharmaceutical product would have to suffer.
By staying out of RCEP in India, the concerns and negative doubts arising from it have been reduced. But being outside it has been deprived of the benefits. Therefore,to get these benefits, India should expand its relations with ASEAN countries, with BIMSTEC countries, IORC and SAARC countries.
India should remove the hidden export barriers in the country. Human resources should be developed through skill development, re-skilling for employment opportunities. Simultaneously .Emphasis should be given on simplification of labor laws and promotion of manufacturing sector by increasing “ease of doing business”. Improving GST implementation, digitisation, single window system, providing investors with 'right to clearance' can make the adverse impacts of not joining RCEP positive. Along with this, India should effectively implement the Act East policy with ASEAN countries.