News analysis

Modi plays it safe opting out of RCEP trade deal

Weak economy and strong domestic opposition combine to dictate his decision

Activists at a rally in Bangalore called by India's opposition Congress party and pro-farmer organisations on Monday to protest against the Regional Comprehensive Economic Partnership. India's Prime Minister Narendra Modi decided that same day not to
Activists at a rally in Bangalore called by India's opposition Congress party and pro-farmer organisations on Monday to protest against the Regional Comprehensive Economic Partnership. India's Prime Minister Narendra Modi decided that same day not to join the mega trade partnership. PHOTO: AGENCE FRANCE-PRESSE
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Widespread criticism in India of the Regional Comprehensive Economic Partnership (RCEP), including from opposition political parties and groups affiliated to the ruling Bharatiya Janata Party (BJP), as well as an ongoing economic downturn in the country, played a key role in New Delhi's decision not to join the deal on Monday.

Prior to the final phase of negotiations, various industry and agricultural lobby groups in India vociferously expressed fears of a greater influx of Chinese products and a surge in imports of primary produce, including dairy, from RCEP member countries.

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A version of this article appeared in the print edition of The Straits Times on November 06, 2019, with the headline Modi plays it safe opting out of RCEP trade deal. Subscribe