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Comparative Politics Foreign Policy Political Parties

China Worries in India’s RCEP Decision

India’s refusal to sign up for the Regional Comprehensive Economic Partnership (RCEP) agreement in Bangkok earlier this month says as much about the state of India’s relations with China as it does about its place in the global trading regime.

There is no doubt that India is in many way not ready for the additional challenges and pain its domestic industry and agriculture will face with accession to RCEP especially since the economy is still recovering from the self-inflicted damage of demonetisation in 2016 and a poorly-executed roll-out of the GST less than a year later.

But there is not an insubstantial argument to be made about the consequences of opening up under RCEP to a Chinese economy that still is far from being an open market economy.