To comprehend and analyze the outcome of the RCEP deal, a High-Level Advisory Group (HLAG) has been set up. Surjit S Bhalla led advisory panel strongly favours India joining RCEP. Government must take the crucial call on being a part of or being excluded from the free trade pact. Despite the pressure erected on India by the RCEP nation to finalizing the deal, India is analyzing the consequences of the treaty.
India’s Cons Related to the Deal
Initially, the fear of importing cheaper goods raised concern over the deal. Further, opposition from domestic traders and manufacturers due to dumping from Malaysia and China created panic. Finally, lack of information on the variation of price is believed to have a negative impact on the Indian economy. Agriculture sector may be affected the most due to low cost of agricultural products available internationally.
India’s Pros on Signing the Deal
India’s first joint big Regional trade pact would expand opportunists in the global market. As a result, it would acquire huge profits provided, domestic manufacturing becomes competitive. Moreover, Pharma-Industries holds a high chance of obtaining market access. Low import duty will push the prices in India down thereby curbing inflation.
HLAG Panel Head, Bhalla Favoring the RECP Deal
The HLAG looked upon sectors such as pharmaceuticals, electronics, textiles, agriculture, etc, which are highly crucial for economic development.
The group has strongly battled and has said that it would not be sensible if India opts itself out of the deal as this would exclude India from access to the regional market. HLAG submitted a report on October 30th that comprised the necessities of the deal. While Bhalla emphasized the importance of the global value chain for economic growth and India cannot possibly advance without being a part of the global chain.
Furthermore, the report contained several actions to pursue gains from the RCEP pact. Besides, Indian might gain global market access according to the FDA. Thereby, it must concentrate on non-tariffs and non-tariff barriers in partner countries. However, RCEP deal without India would be beneficial to local manufacturers and farmers in India.