Asean countries will persuade India to return to the negotiating table for the Regional Comprehensive Economic Partnership (RCEP) trade deal. India pulled out of the RCEP fearing a negative impact on its industries including textiles. It was felt that signing the RCEP would be a big setback for the Indian manmade fiber textile industry. The apprehension being felt by many industrial sectors and farmers on a possible flooding of the market with cheap imports once import duties on goods from China are pared was another reason. The current position of the Indian textile industry is not healthy.

Negotiations for the RCEP, which started in 2012, have targeted strengthening economic co-operation among the ten Asean members along with China, Japan, Korea, Australia, India and New Zealand. The RCEP is home to 30 per cent of the world’s population and 29 per cent of the world’s GDP. The initiative aims at being an Asean-led process through which Asean would broaden and deepen its economic engagements with its FTA partners. The RCEP is envisioned to lead to greater economic integration, support equitable economic development and strengthen economic cooperation among the countries involved.

Despite India’s withdrawal, the RCEP would still be a big free trade that sets a common trade rule.