Explanation –

Statements 1 and 2 are correct. The Regional Comprehensive Economic Partnership (RCEP) is a free trade agreement between 15 countries in the Asia-Pacific region: Australia, Brunei, Cambodia, China, Indonesia, Japan, South Korea, Laos, Malaysia, Myanmar, New Zealand, the Philippines, Singapore, Thailand, and Vietnam. RCEP is the largest free trade agreement in the world, covering over 30% of the global population and GDP. It aims to reduce tariffs, improve market access, and establish common rules for trade and investment across the region.

Out of many other reasons, India decided to opt out of RCEP because it was concerned that the RCEP would open the “floodgates for Chinese goods” to enter India, further raise India’s trade deficits, and weaken its anti-dumping duties that it has imposed on Chinese items from the chemicals, iron, and steel industries.

Statement 3 is incorrect. India’s withdrawal from RCEP does not necessarily mean that it is losing its status as a major player in the Asia-Pacific region. India is still a large and growing economy, and it is a member of other important regional organizations, such as the South Asian Association for Regional Cooperation (SAARC) and the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC).

India is also playing an increasingly important role in global affairs, and it is a member of the G20 and the BRICS group of emerging economies.

However, India’s withdrawal from RCEP does mean that it is missing out on an opportunity to boost its trade and investment with other countries in the Asia-Pacific region.

Source: ForumIAS