{"id":27384,"date":"2018-10-23T13:50:19","date_gmt":"2018-10-23T08:20:19","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=27384"},"modified":"2018-10-23T13:50:19","modified_gmt":"2018-10-23T08:20:19","slug":"the-economics-of-rcep-and-potential-outcomes-for-india","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/the-economics-of-rcep-and-potential-outcomes-for-india\/","title":{"rendered":"The economics of RCEP and potential outcomes for India"},"content":{"rendered":"<p><a href=\"https:\/\/www.livemint.com\/Opinion\/reNwqlmiFVdsP0NoTtjviL\/The-economics-of-RCEP-and-potential-outcomes-for-India.html\"><strong>The economics of RCEP and potential outcomes for India<\/strong><\/a><\/p>\n<p><strong><u>News<\/u><\/strong><u>:<\/u><\/p>\n<ol>\n<li>Importance of RCEP negotiations and concerns raised by India.<\/li>\n<\/ol>\n<p><strong>RCEP &#8211; <\/strong>Comprises the 10-member Asean grouping and its six free trade partners, including China, India, Japan, South Korea, Australia and New Zealand.<\/p>\n<p><strong>ASEAN Members: <\/strong>Brunei, Indonesia, Laos, Cambodia, Vietnam, Malaysia, Singapore, Thailand, Philippines, Myanmar<\/p>\n<p><strong><u>Important Facts:<\/u><\/strong><\/p>\n<ol start=\"2\">\n<li>Widespread debate is taking place whether India should open up its market under RCEP negotiations.<\/li>\n<li><u>Why India has been reluctant to negotiate with RCEP:<\/u><\/li>\n<\/ol>\n<ul>\n<li>Member countries want India to open up its market for 92% of traded goods.<\/li>\n<li>Non Acceptance of India\u2019s demand to liberalize services sector and hassle free movement of skilled labors.<\/li>\n<li>Fear of Steel imports from China and Member countries.<\/li>\n<li>FTAs with South Korea and Japan have caused substantial increase in imports without any concurrent increase in investments in India.<\/li>\n<li>Reduction of import duties to promote global value chain will lead to mass layoffs, low wages and further exploitation.<\/li>\n<li>There is apprehension in India that negotiations may adversely affect its agriculture sector.<\/li>\n<\/ul>\n<ol start=\"4\">\n<li>\u00a0India claimed \u201cbig success\u201d as members conceded to its demand to liberalize their services market and allow movement of skilled professionals<\/li>\n<li><u>Why RCEP is important to India:<\/u><\/li>\n<\/ol>\n<ul>\n<li>Enormous export gains could be expected from RCEP.<\/li>\n<li>Inter-linkages of trade in various sector will enable deeper integration with the region.<\/li>\n<li>Integration with region will further necessitate the free movement of skilled professionals.<\/li>\n<li>Low wages skilled labor will enable the establishment of Multinational enterprises in India<\/li>\n<li>RCEP will provide labor intensive manufacturing industries.<\/li>\n<\/ul>\n<ol start=\"6\">\n<li>\u00a0<u>Impact on India if it does not participate:<\/u><\/li>\n<\/ol>\n<ul>\n<li>Uncompetitive exports price vis-\u00e0-vis other RCEP member\u2019s exports will impact India\u2019s trade.<\/li>\n<li>Trade deficit may lead to foreign exchange shortages and the subsequent depreciation of the rupee.<\/li>\n<li>Geopolitical situation will make it difficult for India to negotiate easier immigration norms without any comprehensive dialogue<\/li>\n<\/ul>\n<ol start=\"7\">\n<li><u>What India need to do:<\/u><\/li>\n<\/ol>\n<ul>\n<li>Adopt balancing approach towards import liberalization without sacrificing domestic interest.<\/li>\n<li>India could negotiate and bargain to maximize its export due to huge trade deficit.<\/li>\n<li>Rather than demand to liberalize skilled labor movement, India should focus on skilling its manpower as the aging countries of Asia would anyway need skilled professionals.<\/li>\n<li>India should be cautious to open the steel sector under RCEP negotiation; otherwise China may dump cheap steels items.<\/li>\n<li>India should open competitive and efficiency yielding sectors under RCEP negotiation.<\/li>\n<\/ul>\n<ol start=\"8\">\n<li>It has been argued once the RCEP be concluded it will create the largest regional trading bloc.<\/li>\n<\/ol>\n<ul>\n<li>Making up 25% of Global GDP<\/li>\n<li>30% of Global Trade<\/li>\n<li>26% of foreign direct investment (FDI) flows.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>The economics of RCEP and potential outcomes for India News: Importance of RCEP negotiations and concerns raised by India. RCEP &#8211; Comprises the 10-member Asean grouping and its six free trade partners, including China, India, Japan, South Korea, Australia and New Zealand. ASEAN Members: Brunei, Indonesia, Laos, Cambodia, Vietnam, Malaysia, Singapore, Thailand, Philippines, Myanmar Important&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/the-economics-of-rcep-and-potential-outcomes-for-india\/\">Continue reading <span class=\"screen-reader-text\">The economics of RCEP and potential outcomes for India<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-27384","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704625560},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/27384","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=27384"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/27384\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=27384"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=27384"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=27384"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}