NITI Aayog CEO B V R Subrahmanyam advocates for India to reconsider its stance on joining plurilateral trade blocs like RCEP and CPTPP, a key shift in policy outlook
India’s MSMEs, making up 40% of exports, stand to gain from joining large trade blocs, which provide access to broader markets and global value chains
While RCEP includes China, India must consider the benefits of the bloc, including trade access with countries like Southeast Asia, South Korea, and others
Despite concerns, India’s fears about China dominating trade can be mitigated, as RCEP members can take action against one another, as shown by China-Australia tensions
The CPTPP’s focus on regulatory harmonisation, beyond just tariffs, provides India with an opportunity to eliminate non-tariff barriers and improve trade relations
Subrahmanyam’s suggestion aligns with India’s changing trade climate and evolving relations with China, urging the government to reconsider joining key trade agreements