India will not sign any free trade agreement (FTA) in a hurry but the ‘fear psychosis’ being generated in the country against any such pact must be done away with for India to avoid global isolation in trade, according to Indian commerce and industry minister Piyush Goyal, who recently , asserted that the government would safeguard the interest of domestic industry.
Ahead of the 16-nation Regional Comprehensive Partnership Agreement (RCEP) summit next week in Bangkok, Goyal said in New Delhi that a lot of wrong information has been spread all over about RCEP.
“India will have to finally balance its imperatives of protecting domestic interest with engaging with the rest of the world,” Indian media reports quoted him as saying.
Goyal spoke on the issue yesterday on Wednesday on two separate occasions: a state consultation workshop on ‘Make in India’ and the launch event of a report of a high-level advisory group under noted economist and India’s executive director-designate to the International Monetary Fund SurjitBhalla on ways to boost exports.
RCEP faces fierce Indian resistance not just from industries, including steel and dairy, but also government departments overseeing these sectors, because of fears of dumping by countries like China. Even the opposition parties, including the Indian National Congress, have voiced concerns against the RCEP.Most RCEP members want to conclude the negotiations in 2019 so that a deal can be formally signed in 2020. Some of the member nations are upset with India.
Domestic industry groups have highlighted that even without RCEP, India’s merchandise trade deficit with China stood at $53.6 billion in fiscal 2018-19, or nearly a third of its total deficit. Its deficit with potential RCEP members (including China) was as much as $105 billion in 2018-19.
