New Delhi: As the RCEP meeting enters a crucial phase in Bangkok, India Inc believes a pact would throw up both challenges as opportunities for Indian businesses.
However, CII, the country’s largest industry body, feels that not being part of the proposed mega trade deal will harm India’s exports and future investment flow by cutting off the country from the trading bloc comprising 15 other nations in terms of preferential access.
“Any decision of joining an agreement of this size and magnitude must not be based on our concerns with regards to just one country,” said Vikram Kirloskar, President, CII.
The industry body expects increased trade with RCEP nations once the mega deal is signed. “By being part of the bloc, India will get an opportunity to tap large and vibrant economies and grow its exports. Not being part of the bloc is tantamount to not having an even footing in terms of preferential access and losing export competitiveness,” the CII said.
The CII statement assumes significance as a section of domestic industries has raised concern over the RCEP deal over tariff related issues. However, Prime Minister Narendra Modi had said on Saturday that India would consider whether its concerns and interests in trade in goods, services, and investments are being fully accommodated when he attends the RCEP Summit there.
“FTAs must be considered from their long term impact, both on our domestic market and the access it provides. Some of our industry may be domestically focused today, but in ten years would want the access to this most vibrant region of 15 other countries that RCEP provides”, said Kirloskar.
