India should reconsider its rejection of the RCEP trade bloc
Live MintFive years ago, on a November morning in Bangkok, just on the verge of signing the Regional Comprehensive Economic Partnership agreement, India abruptly walked out of it. India’s RCEP participation should be based on a broad set of metrics—not merely the trade deficit, but also investment inflows, employment creation and participation in new regional value chains. A 2022 assessment by Arvind Panagariya and Pravin Krishna indicated no significant deterioration in India’s trade deficit with Asean countries despite 10 years of a free trade agreement. It’s imperative to expand trade in the RCEP region, tap the huge untapped export potential of agricultural products, pharmaceuticals and services, and embrace value chains that favour MSME-employment. India’s pursuit of several bilateral trade deals is less efficient than joining a mega trade bloc such as RCEP.