India's Trade Dilemma: The RCEP Challenge

India's potential participation in the RCEP agreement remains contentious due to significant trade deficits with member countries and illegal Chinese trade practices. Despite existing FTAs with most RCEP nations, India's trade deficits, especially with ASEAN, Korea, and Japan, raise concerns about joining RCEP. Domestic industries face considerable threats from these partnerships.

India's prospects for joining the Regional Comprehensive Economic Partnership (RCEP) have faced scrutiny due to the widening trade deficits with member countries and China's dubious trade practices, according to a report by the think tank GTRI.

In 2019, India consciously opted out of the RCEP bloc, citing concerns about trade imbalances and potential impacts on domestic industries. The RCEP, negotiated among 10 ASEAN member states and their six free trade partners, encompasses countries that account for a substantial portion of the global GDP and trade.

Although India already maintains FTAs with most RCEP countries, the report indicates minimal additional benefits could arise from joining. Significant challenges remain, including India's growing trade deficit, particularly with ASEAN, South Korea, and Japan, which underscores the potential risks of RCEP participation.

(With inputs from agencies.)