New Delhi, 18th November: India has decided not to join the Regional Comprehensive Economic Partnership, a Beijing-dominated RCEP. This decision of Prime Minister Narendra Modi surprised everyone.
The Modi government says that it has been decided not to join RCEP due to the interest of the country. The Indian government has clearly stated that concern was expressed about some aspects of RCEP. Some of its provisions were unclear. Prime Minister Narendra Modi described it as the decision to voice his soul.
There are 4 main reasons behind the voice of this soul of PM Modi
- Severe impact on India’s domestic product: Pro. Harsh Pant says that joining RCEP could have become a major problem especially for small traders in India. This agreement would have disastrous consequences. After this agreement, prices of coconut, black pepper, rubber, wheat, and oilseeds were in danger of falling. Due to this, the business of small traders was in danger of collapsing. India’s milk industry would collapse due to the import of milk powder from New Zealand.
- China becomes a big factor: Pro. Harsh says that India’s experience with free trade agreements has not been good already. India would have done more imports and fewer exports from countries where India would be involved in RCEP. The position of RCEP India, dominated and supported by China, is not comfortable. India’s trade deficit with China is higher than before and exports are lower. In such a situation, India’s situation may worsen. Prof. Pant says that China is stronger financially. Its reach in East Asian countries is more than India. China will obviously benefit more in this situation. He said that India does not have that kind of economic relationship in East Asian countries. India is taking initiative in this direction, while China already has better access to those countries.
- Government of India policy of self-sufficiency: It is also being argued that the decision has been taken to make India self-reliant and to make the domestic market safer and more robust than the outside world. India is shocked to find that the cheaper Chinese are not easily available everywhere in Indian markets. This may pose a threat to Indian small scale industries. By joining it, the policy of self-sufficiency announced by the Government of India in May this year will not prove effective.
- Business organizations also protested: Apart from this, the farmers and business organizations of the country are also opposing it. He also argues that if India joins the RCEP, it will make the farmers and small traders poor. For small traders, this can be a matter of crisis. Amul Dairy also opposed this. Politics had started in the country regarding this. It was opposed on many fronts.
