According to a report from Livemint, India is considering rejoining the Regional Comprehensive Economic Partnership (RCEP), a trade group of 15 countries. This consideration is driven by escalating trade tensions with the United States and improving relations with China. India had previously withdrawn from the group in November 2019 due to concerns over market access, trade deficits, and potential harm to domestic manufacturing, small businesses, and farmers. One of the main concerns was the fear that Chinese goods would flood the Indian market. The new U.S. tariffs, which are particularly high on India, are making RCEP a more attractive platform for eastern economies.
The Indian government has initiated internal discussions to reassess the benefits and costs of joining RCEP, with a focus on diversifying its export markets. This rethink is part of a broader strategy to deepen trade engagement with neighboring countries following strained trade talks with the U.S.. As a sign of improving ties, China has lifted export curbs on rare earth magnets, fertilizers, and tunnel-boring machines for India. India is also considering easing rules for Chinese investments in select sectors. India is pushing for written assurances from China and ASEAN nations for greater market access for its products to ensure a more balanced agreement.