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3) What is RCEP? What are the potential benefits and disadvantages for India? Discuss India’s key issues with RCEP while suggesting way forward. (250 words)

Topic: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.

3) What is RCEP? What are the potential benefits and disadvantages for India? Discuss India’s key issues with RCEP while suggesting way forward. (250 words)

The hindu

Why this question:

Negotiations on the final agreement under the Regional Comprehensive Economic Partnership (RCEP) are becoming increasingly urgent as the deadline approaches. The article brings out a detailed narration on the importance of RCEP its advantages and disadvantages to India and way ahead.

Key demand of the question:

One has to bring out the significance of RCEP, advantages and disadvantages for India.

Directive:

DiscussThis is an all-encompassing directive – you have to debate on paper by going through the details of the issues concerned by examining each one of them. You have to give reasons for both for and against arguments.

Structure of the answer:

Introduction: 

RCEP is a proposed Free Trade Agreement (FTA) between ten ASEAN member states and their six FTA partners namely India, Australia, China, Japan, New Zealand and South Korea.

Body:

In brief explain what RCEP is.

Discuss the advantages – boost India’s inward and outward foreign direct investment, facilitate India’s MSMEs, reduce trade costs etc.

 And disadvantages of RCEP to India – Widening Trade Deficit; Tariff elimination due to RCEP could worsen the trade deficit, other factors etc.

Conclusion:

Conclude with way forward.