Indian Prime Minister Narendra Modi’s administration won’t let China flood India with its manufacturing products, the way it did with Pakistan. This week, Modi declined to sign the Regional Comprehensive Economic Partnership (RCEP) at the Association of Southeast Asian Nations (ASEAN) summit in Bangkok.
China is the biggest member of RCEP, and its manufacturing products could flood India’s markets, once the agreement takes effect; and widen further widening the trade deficit between India and China.
That’s what happened in Pakistan following the signing of a free trade agreement (FTA) with China back in 2006. According to Pakistan Bureau of Statistics (PBS) statistics, Pakistan’s imports from China soared from $3.52billion in 2006-7 to $15.74 billion in 2017-18. Read more