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30 AUG,2020 | MEDC
Despite all that has occurred, China continues to remain central to global manufacturing. India’s withdrawal from the Regional Comprehensive Economic Partnership (RCEP), combined with the earlier withdrawal of the US from the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP), has strengthened the regional situation in favour of China. We also cannot count on agricultural exports, as even though agricultural trade has been the least volatile during Covid, this could also be the sector to face maximum trade barriers after the pandemic. India needs to strengthen its presence in global value chains (GVCs), and for that we may need to engage more actively with Association of South-East Asian Nations (ASEAN) and other East Asian economies. In the global economy hurt by the pandemic, the East Asian region has been one of the most resilient, and India needs to make its presence felt there, rather than heavily emphasizing trade agreements with the US and the EU.
*Photo Credit: Google
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