InvestorQ : What could be the pros and cons of India walking out of the RCEP trade deal?
prachi Patwardhan made post

What could be the pros and cons of India walking out of the RCEP trade deal?

Answer
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11 months ago


The decision to not participate in the RCEP was driven by Indian economic interests and that is the way it should be. Let us look at the pros and the cons.

On the positive side, Indian agriculture and industry will not have to worry about too much of dumping risk from China. India is already facing dumping from China and South Korea due to price differential. Secondly, it will also keep the trade deficit in check and will not tie India down to any one regional trade deal.

On the downside, it does give a diplomatic advantage to China over India with the Asian nations and that is something India needs to work on. Secondly, this could have been used as an opportunity to make Indian industry more efficient, but that is now not happening.