🏃🏻♂🏃🏻♂ *5 reasons why India pulled out of RCEP*
1.ECONOMIC SLOWDOWN
As the industry is reeling under pressure and the government is grappling to deal with the domestic economic situation, a massive free trade pact like RCEP would have exposed the Indian businesses and agriculture to unequal competition
2.TRADE DEFICIT
At present, India ships 20 per cent of all its exports to the RCEP countries and receives 35 per cent of all imports from them. Of India's $105 billion trade deficit with RCEP countries, China accounts for $53 billion.
3.INDUSTRIES AND FARMERS
RCEP was one of those pacts that was opposed by both the industry and farmers alike. Manufacturing sector in India is in crisis. Services sector is also not doing well, of late.
In agriculture, domestic players dealing in dairy products, rubber, spices would face dumping from Sri Lanka, Vietnam, Indonesia, Australia and New Zealand are waiting for a free access to India for their products.
4.PAST EXPERIENCE
The Niti Aayog, in 2017, had published a report that pointed out that free trade agreements have not worked well for India. The Niti Aayog analysis showed that import from FTA countries increased while export to these destinations did not match up.
5.CHINA'S GAMEPLAN
Finally, RCEP has come up as a Chinese gameplan to save its manufacturing industries from crumbling under their own weight. China needs greater access to Indian market to sustain its manufacturing industries.