Sir,
NITI Aayog’s warning that India should rethink about joining the Regional Comprehensive Economic Partnership (RCEP) forum could not have come at a more appropriate time. The government’s key think-tank had reportedly argued, in a note on free trade agreements (FTAs) and their costs to highly import-dependent India, that such a partnership could be disastrous to the country. India is one of the world’s biggest import-driven, deficient-balance-of-trade economies. Significantly, India’s joining RCEP would mean a huge market access to China – the key player in the grouping. And, that threatens to unsettle India’s economy and its domestic manufacturing programmes.
Incidentally, it is not the first time that a top government agency and officials have opposed India joining the 16-member RCEP grouping. Earlier, Chief Economic Adviser Arvind Subramanian, attached with the union finance ministry, too had said that India needs to be extra cautious and take into account geo-strategic issues while moving ahead with the RCEP deal as it will also mean opening up the market to its adversary China. Former foreign secretary S. Jaishankar too had called for “observance of due restraint” and warned against concluding trade arrangements that are not in India’s medium-term interest. India’s trade deficit with RCEP countries has risen from $9 billion in 2004-05 to $83 billion in 2016-17, of which China alone accounts for over 60 per cent of the deficit.
Yours etc….
Nantoo Bnerjee
On -email
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