New Delhi: India is not actively considering rejoining the China-backed Regional Comprehensive Economic Partnership (RCEP), government sources have told media, firmly pushing back against speculation that New Delhi may be rethinking its decision to stay out of the mega trade bloc.
“There is nothing on the table. We have not considered it,” a senior government source said when asked about a possible review of India’s RCEP stance. Another source offered a blunt assessment, saying, “One way to look at RCEP is that it’s effectively a China channel,” underlining India’s enduring concerns about the bloc’s China-centric trade dynamics.
Bilateral Deals Trump Mega Trade Blocs
Officials stressed that India’s trade strategy is deliberately focused on bilateral and selective regional agreements, rather than joining large multilateral frameworks that could limit its ability to manage import sensitivities.
Sources pointed out that India already has bilateral trade arrangements—either concluded or under negotiation—with most RCEP members, excluding China. This, they argued, allows India to secure market access without exposing itself to the structural risks associated with RCEP as a bloc.
The thinking in New Delhi is that once a critical mass of bilateral deals is in place, India can reassess the relevance of larger frameworks—but RCEP is not part of the current policy agenda.
China Exposure Remains The Core Concern
Officials indicated that India’s reluctance mirrors the same caution it has exercised in other trade negotiations, including with the European Union, where market opening has been carefully calibrated.
In the India-EU free trade agreement, New Delhi agreed to liberalise roughly 92 per cent of tariff lines over time, but protected sensitive sectors using phased tariff reductions, quotas and tariff-rate quotas (TRQs). According to sources, RCEP lacks the flexibility required to manage similar sensitivities—especially given China’s dominant manufacturing scale and export competitiveness.
A broad, across-the-board tariff reduction under RCEP, sources said, could constrain India’s ability to control import surges in sectors such as agriculture, MSMEs and labour-intensive manufacturing.
Global Trade Shifts Reinforce India’s Approach
Government officials also framed India’s stance within the context of a changing global trade environment, where countries are increasingly moving away from a uniform, WTO-centred model toward bilateral and minilateral agreements.
This shift has been driven by:
- COVID-era supply chain disruptions
- Rising geopolitical tensions
- Growing concerns over trade weaponisation
In such a landscape, India wants maximum flexibility—deepening integration with partners like the EU, UK, EFTA and Australia, while avoiding frameworks that could increase dependence on a single geography.
De-Risking, Diversification And Policy Continuity
Sources described the India-EU deal as part of a broader strategy of “de-risking and diversification”, arguing that excessive reliance on one market or supply source is “perilous” in today’s global economy.
That logic, officials suggested, runs counter to the case for RCEP, which India exited in 2019, citing concerns over:
- Inadequate safeguards against import surges
- Weak rules of origin
- Insufficient protection for domestic industry
Clear Signal To Domestic Industry
For now, the government’s message is one of continuity and predictability:
- Bilateralism over bloc entry
- Calibrated openness over blanket liberalisation
- A firm red line against arrangements that increase China-linked exposure
Officials said the emphasis on “nothing on the table” is also intended to reassure domestic industry, which has remained sceptical of RCEP since India’s withdrawal.