New Delhi: It is in the interest of the region as well as India’s own economic interest for New Delhi to sign up for RCEP (Regional Comprehensive Economic Partnership) in the long run, argued economic expert Vijay Sardana.
Prime Minister Narendra Modi had held that India will not join the mega Regional Comprehensive Economic Partnership (RCEP) deal as negotiations failed to satisfactorily address New Delhi's 'outstanding issues and concerns'.
Speaking to ETV Bharat, the bio-economy expert said that the decision is right in the current scenario however, the fact remains that India cannot compete in the international market.
"It is a challenge. We need to improve our quality and competitiveness or else India will get isolated in the world market in terms of export," he said.
"Staying out of RCEP will provide immediate relief but offers no long term solution," Sardana said. Talking on the aspect of the agriculture sector and the influence of trade agreements he said, "Lack of technology coupled with political decisions including the higher rate of MSPs every year is affecting the productivity."
"Political decisions to protect farmers from cheap imports from other countries are correct. But till when should we continue this? We need to unleash the potential of agriculture," he added.
He further stated that if the consumption happens in India itself the country will shift towards a closed economy with no value addition.
"In order to bring foreign money and investment to aid in growth and development, we need to export," he said.
After long-drawn negotiations with 10 member countries of the Association of Southeast Asian Nations (ASEAN) and the bloc's dialogue partners including China, Japan, South Korea, Australia, and New Zealand, India pulled out of the proposed RCEP agreement during the ASEAN summit held in Bangkok.
India has been forcefully raising the issue of market access as well as protected lists of goods mainly to shield its domestic market as there have been fears that the country may be flooded with cheap Chinese agricultural and industrial products once it signs the deal.
