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India’s RCEP dilemma sharpens as global trade shifts and US–China rivalry deepens, compelling New Delhi to weigh market gains against strategic ri

At this juncture of weak economic performance, India has done well not to sign the treaty. It can still join if its main complaint about rapid tariff reduction by 80 to 90 per cent on imports from China is resolved. Also, its concerns about services have to be dealt with, especially regarding the movement of service workers within the region. India could not at this point have opened its huge market to ASEAN and China unconditionally.

India pulled out of the planned Regional Comprehensive Economic Partnership (RCEP) in 2018 after entering negotiations in 2013. India has a trade deficit with 11 out of the 15 RCEP countries and some analysts have theorised that India decided to opt out of the agreement because of such adverse trade balance.  Indeed, India has a trade deficit with most of its trade partners in past free trade agreements (FTAs). It is in this context that this br