India–Regional Comprehensive Economic Partnership Trade Overview
RCEP is the world's largest trade bloc by GDP and population. India withdrew from RCEP negotiations in 2019 citing manufacturing competitiveness concerns. This creates both a gap and an opportunity —
Member States (15)
China
Japan
South Korea
Australia
New Zealand
Brunei
Cambodia
Indonesia
Laos
Malaysia
Myanmar
Philippines
Singapore
Thailand
Vietnam
Top Verticals for This Bloc
Key Risks — India Trade with Regional Comprehensive Economic Partnership
RCEP members (China, ASEAN) gain FTA advantage over India in each other's markets
High — China's RCEP membership gives 0% access to ASEAN markets India cannot match on MFN
Mitigation: India must leverage bilateral FTAs (India-Japan CEPA, India-South Korea CEPA, India-Australia ECTA, India-Singapore CECA) to partially offset RCEP disadvantage.
China uses RCEP to expand manufacturing-led export dominance in ASEAN
High — Chinese goods enter ASEAN at 0% while Indian goods at MFN
Mitigation: Compete in non-commodity, value-added segments where China has less advantage: pharma, software, specialty chemicals, engineering
FAQ — India & Regional Comprehensive Economic Partnership
Q: Is India likely to rejoin RCEP?
India's position remains: not ready to rejoin without safeguards on Chinese imports. India is instead pursuing bilateral FTAs with RCEP members (Australia, Japan, South Korea) to partially replicate RCEP benefits.
Q: What is the commercial impact of India's RCEP absence for Indian exporters?
Indian goods face 5–15% duty in ASEAN markets (vs 0% for China/RCEP members). This hurts textiles, engineering goods, chemicals. Pharma less affected as often on 0% MFN lists even in RCEP.
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