New Delhi, October 31: Union Commerce and Industry Minister Piyush Goyal has defended India’s decision to stay out of the Regional Comprehensive Economic Partnership (RCEP), warning how the trade bloc would have dealth a blow to domestic manufacturing and allowed India to become a dumping ground for Chinese goods.
Speaking at the 4th ISID-IDRA National Conference on India’s Industrial Transformation, Goyal explained that he had been opposed to the deal, even though some bureaucrats tried to convince the PM to accept it anyway.
“I used to tell the Prime Minister that we cannot join the RCEP trade bloc. We will die. But then officials used to go right after me and tell the PM India should join RCEP..It was a cat and mouse game until the PM saw all the details and took a bold decision,” reminisces Minister Piyush Goyal.
In his address, Minister Goyal outlined how India has already signed Free Trade Agreements (FTAs) with ASEAN, Japan, South Korea, and recently, New Zealand, with each one helping manufacturers and SMEs getting access to foreign markets while protecting domestic interests.
If we had joined the RCEP, it could’ve effectively helped Chinese manufacturers dump cheap products in India, undermining the competitiveness of domestic manufacturers and micro, small, and medium enterprises (MSMEs).
The Commerce and Industries Minister has been championing FTAs, hoping to reach $1 trillion in exports, as the ballooning trade deficit with China and declining forex reserves have made economic growth challenging.
Though not joining the RCEP has been a step in the right direction, India has yet to address systemic challenges in its economy, with low R&D spending, lack of manufacturing growth and skill development being the core concerns.
