Get All Access for $5/mo

This is Why India Opted Out of RCEP The principle concern was the danger of imports from China flooding Indian markets

By Vinayak Sharma

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

PIB

India on Monday decided not to be a part of the Regional Comprehensive
Economic Partnership (RCEP) given, as articulated by Prime Minister Narendra
Modi, the country's main concerns were not addressed.



Speaking at the RCEP Summit in Thailand, Modi said, "Our farmers, traders,
professionals and industries have stakes in such decisions. Equally
important are workers and consumers, who make India a huge market and the
third biggest economy in terms of purchasing power parity. When I measure
the RCEP agreement with respect to the interests of all Indians, I do not
get a positive answer. Therefore, neither the talisman of Gandhiji nor my
own conscience permit me to join RCEP."

Also Read: Top 4 Trade Partner Countries of India

This is the second time since 2014 that the government has decided to not be
a part of such as deal. A few months after coming to power in 2014, the
Modi-led government had backed out from the WTO's landmark Bali package
citing it could have affected the nation's food acquisition programme.



This time, there were several reasons for India to not join the RCEP.

Also Read: 17 MoUs that will boost India and Germany business ties


The principle concern was the danger of imports from China flooding Indian
markets. It is feared that Chinese products could have been redirected to
India through other RCEP nations.

Other concerns include scarcity of safeguard measures against the influx of
products in India, likely loss of INR 50,000-60,000 crore if agreed to the
reduced import duties and RCEP trade packages affecting Indian government's
economic policies.
In addition, experts, farmer associations, worker associations, traders and
the opposition too were not in favor of the deal.



Here's what the leaders have to say about the decision to withdraw from the
RCEP.

Home Minister Amit Shah's Tweet

Commerce Minister Piyush Goyal's Tweet

INC's tweet

The RCEP is a proposed free trade agreement between the ten member states of
the Association of Southeast Asian Nations and its five FTA partners. India
is the sixth FTA partner.

Vinayak Sharma

Entrepreneur Staff

Correspondent, Entrepreneur India

Starting a Business

He Started an 'Accidental' Business at 25 With Just $2,000 — Then Gave His Product to the Pope: 'Anyone Can Be an Entrepreneur'

Michael Aram, founder of the namesake luxury home and jewelry brand, learned the art of metalworking in India — and used it to launch a global brand.

Fundraising

You Don't Need Venture Capital Anymore — Here Are 4 Funding Alternatives

Are you hoping to raise capital for your business without traditional investor interference? Here are four alternatives you could pursue.

Business News

Elon Musk Endorses Trump, Says He's Faced Two Recent Assassination Attempts: 'Dangerous Times Ahead'

Elon Musk endorsed former President Trump minutes after the failed assassination at a rally in Pennsylvania and says two attempts have been made on his life while living in Texas.