Amid rising concerns over increasing China’s influence in the Asia Pacific region, India’s decision to withdraw from Regional Comprehensive Economic Partnership (RCEP) over “inadequate” protection against surges in imports, particularly from China and various unresolved “outstanding issues” looks wise in the present scenario. However, this protectionist mind-set is unsustainable in long run and India must do away with its defensive attitude and instead, work on export promotion strategies and creating globally competitive sectors. Trade blocs are believed to have substantial “trade creation” effects by removing trade barriers and enabling free trade between participating countries. The member nations in such free trade agreements (FTAs) benefit through greater economic integration, lower tariffs, better trading opportunities, increased exports, economies of scale, higher competition and improved choice with lower prices for customers. Such pacts facilitate trade by letting companies ...
A blog about challenges and opportunities in Indian economy