India could disadvantage itself further vis-a-vis China by joining free trade pacts | The Indian Express

India could disadvantage itself further vis-a-vis China by joining free trade pacts | The Indian Express

Written by Abhijit Mukhopadhyay |Updated: September 12, 2019 9:44:02 am

The writer is senior fellow at the Economy and Growth Programme, Observer Research Foundation

India could disadvantage itself further vis-a-vis China by joining free trade pacts

Various estimates show that RCEP’s share in the world GDP may touch 50 per cent by 2050. The fear that India may be left out if it decides not to join the group is real. But given the economic clout of China and other economies, India may find it very difficult to grab a significant share of the this RCEP cake.

Leaders of the Association of Southeast Asian Nations (ASEAN) pose for a group photo during the opening ceremony of the ASEAN leaders summit in Bangkok, Thailand. (AP/File)

This refers to the editorial, ‘Seize the pact’ (IE, September 10). I agree with its assertion that “the government will have to think through its strategy on joining trade pacts”. Trade ministers of the participating countries in the Regional Comprehensive Economic Partnership (RCEP) will confer in November, when the leaders of these countries meet for the ASEAN summit. There is pressure on India from the proponents of free trade to join RCEP. However, free trade is not a black and white affair, it never was. Therefore, I would like to take issues with the editorial’s main point, “Joining these FTAs (free trade agreements under the RCEP umbrella) will not only gradually facilitate the country’s integration with global value chains, but provide greater opportunities for investment”.