Prime Minister Narendra Modi took a courageous and bold decision not to accede to the multilateral trading edifice at the Regional Comprehensive Economic Partnership (RCEP) meeting in Bangkok on Monday on the ground that the pact did not reflect the original intent and the outcome was ‘neither fair nor balanced’. In recent times this is the second courageous decision of the government after India declined to support the Chinese initiative of One Belt One Road (OBOR).
In fact, India’s major concern with RCEP was that lowering of tariffs would flood the Indian market with Chinese goods which have already affected domestic industries, particularly the MSME sector and would hurt the ‘make in India’ initiative. The dairy sector and the agriculture sector in India would also be affected under the RCEP regime, if India acceded to the pact in the present format. Read More