ISAS Insights

The 16-country Regional Comprehensive Economic Partnership (RCEP) negotiations are heading for a conclusion. However, doubts persist over India’s readiness to conclude the deal. This paper looks at India’s objections, particularly fears over Chinese imports, and argues these fears overlook its dependence on imports for domestic inefficiencies. It criticises paranoid Indian opinions on free trade agreements and the lack of attention on their economic benefits, primarily through more exports and foreign direct investments, larger share in global markets and higher gross domestic product growth. Arguing that the Indian world view on trade remains stuck in non-alignment, the paper cautions about the high economic and strategic costs that India might have to pay if it disengages from the RCEP.