Yet, without India, Asia’s third-largest economy, there will be limited gains to be had from the RCEP, some analysts say. That’s because India on average has higher tariffs than other RCEP countries and, therefore, has the largest scope to reduce them. A recent analysis by ICICI Securities Ltd showed that in 2018-19, India’s trade deficit with RCEP countries, as it were, stood at $105 billion. India fears the RCEP will also limit its policy-making room in areas such as foreign investment. It’s wrong to assume that, since India has a comparative advantage in the services sector, the RCEP could be beneficial.

Source: Hindustan Times November 20, 2020 03:38 UTC