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India’s opting out of RCEP appears more debatable in terms of its economic rationale. Comment.

Topic: Bilateral, Regional and Global Groupings and Agreements involving India and/or affecting India’s interests.

1. India’s opting out of RCEP appears more debatable in terms of its economic rationale. Comment. (250 words)

Reference: The Hindu

Why the question:

The question is amidst the recent opting out of RCEP by India.

Key Demand of the question:

Analyse in detail the India’s position in RCEP and the rationale behind it.

Directive:

Comment– here we have to express our knowledge and understanding of the issue and form an overall opinion thereupon.

Structure of the answer:

Introduction:

Present brief background of RCEP; The Regional Comprehensive Economic Partnership (RCEP) was signed on 15.11.2020 by 15 countries led by China, Japan, South Korea, Australia, New Zealand and the 10-state ASEAN grouping.

Body:

Start by addressing the fact that India recently opted out of it, present the reasons – the economic factors; Protecting its economy from burgeoning trade deficits with a majority of the 15 RCEP members. It had cited the grouping’s refusal to accede to its requests on safeguards as a deal breaker.

Present the significance; RCEP members now account for about 30% of the global GDP and a third of the world’s population. The timing of the accord presents a unique opportunity to support economic recovery, inclusive development and job creation.

Discuss both pros and cons.

Conclusion:

Suggest way forward.