Revival Strategy of industry is increase Consumption!!! We all are hearing this from all stakeholders of the industry and discussion going on around how, when and why? One of the strategy suggested of revisal of bilateral trade between all neighboring countries, developed countries, all other Trade agreements which was initially made for benefits of industry!
India – Bangladesh Free trade agreement, China entering indirect way to India by dumping surplus Chinese goods, due to trade issues with USA.
All industry in India worried for RCEP (Regional Comprehensive Economic Partnership) is proposed FTA ( Free Trade Agreement ) between 16 nations which includes 10 ASEAN Nations ie. Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam and its six partners are China, Japan, India, South Korea, Australia and New Zealand. This RCEP group is 45% of world’s population with 33% of its GDP and at least 28% of all trade in the world today. This is make or break deal for Indian government.
If the RCEP is concluded, it will bring stability to an otherwise unpredictable world market. The worry is that it could also make world trade less flexible, putting members into a quasi-bloc with China. Most RCEP members also conduct substantial trade with the United States, and the ongoing U.S.-China trade war may force many of them to take sides, causing a geopolitical rift within the group even before it is fully formed.
As a result, the next four months leading up to the next RCEP summit will be watched closely by the entire world. Anticipation levels are high, and the ASEAN grouping even has a countdown to the summit, to be held on November 19 in Bangkok.
India’s chief concern with the RCEP is the fact that it needs to protect its economy from the flooding of cheap imports from China. Of all the countries in the RCEP, India is the only one not involved in any bilateral or multilateral negotiations for an FTA with China, and the worry for the government and industry is that an FTA within the RCEP will just become a cover for duty free trade into India for Chinese goods. RCEP negotiators have thus far agreed to allowing India a differential tariff ladder, for its FTA partners and its non-FTA partners (China, Australia and New Zealand) within the grouping. China wants zero tariffs for over 90 per cent tariff lines however, which could see low-cost “Made in China” goods kill locally manufactured goods. India has asked for strict “Rules of Origin” markings on all goods, so they don’t come in through a third country.
In addition, India wants to ensure the free flow of services (manpower) to RCEP countries as well, but has faced an uphill task as most countries tighten their immigration laws. The government has been cautious about moving ahead for this FTA.
Celebrate Indian Festival Season with Indian made products to support domestic industry.
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