What is Regional Comprehensive Economic Partnership (RCEP)? While analysing India’s role in it, discuss current approach of India towards the RCEP negotiations?

The Regional Comprehensive Economic Partnership (RCEP) is a free trade agreement (FTA) among 15 Asia-Pacific countries, including 10 ASEAN members (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam) and five other countries (China, Japan, South Korea, Australia, and New Zealand). The RCEP was signed on November 15, 2020, after eight years of negotiations, and it is expected to create the world’s largest trading bloc, covering about 30% of the world’s GDP and population.

India was initially part of the RCEP negotiations, but it withdrew from the talks in November 2019, citing concerns about potential negative impacts on domestic industries and agriculture. India was particularly worried about a potential influx of cheap goods from China, which could hurt its manufacturing sector and trade deficit. India’s withdrawal from the RCEP was seen as a setback for the agreement, as India is a large market with a population of over 1.3 billion, and its inclusion could have added significant economic and geopolitical weight to the deal.

India’s role in the RCEP:

• India was initially part of the RCEP negotiations but withdrew from the talks in 2019 due to concerns about potential negative impacts on domestic industries and agriculture.
• India’s withdrawal was seen as a setback for the RCEP, as India is a large market with significant economic and geopolitical weight.
• India’s current approach is to remain outside the agreement and focus on boosting its domestic industries and exports.
• India has expressed interest in engaging with the RCEP countries on a bilateral basis to address its concerns and explore the possibility of joining the agreement in the future.
• India has already signed FTAs with several RCEP countries and is negotiating FTAs with Australia and New Zealand.
• India’s current approach to the RCEP negotiations is to remain outside the agreement for now and focus on boosting its domestic industries and exports.

However, India has expressed interest in engaging with the RCEP countries on a bilateral basis to address its concerns and explore the possibility of joining the agreement in the future. India has already signed FTAs with several RCEP countries, including Japan, South Korea, and Singapore, and it is negotiating FTAs with Australia and New Zealand.