India, RCEP and economic theory

As things stand, the RCEP is dead in the water without India and can not last as an effective trading bloc

There has been a lot of criticism of India’s refusal to be a part of RCEP, the Asian trade bloc sponsored by China. India will never become an efficient manufacturer, say the critics.

There has also been a lot of support for India’s decision. Indian manufacturing will die if it joins the RCEP, goes this argument. The two sides can argue till the cows come home. It will make no difference.

But let me say this at the very outset: staying out of RCEP doesn’t mean that India is about to become an autarky, which is what the critics are