New Delhi, August 21, 2025 — India is reconsidering its position on the Regional Comprehensive Economic Partnership (RCEP), the world’s largest trading bloc, nearly five years after walking away from the agreement.
According to senior government officials, New Delhi’s renewed interest comes amid growing trade frictions with the United States and improving relations with China. The move signals a potential shift in India’s economic strategy toward deeper integration with eastern economies.
India had exited RCEP negotiations in November 2019, just before the pact was signed by 15 countries, citing fears of rising trade deficits, risks to farmers, pressure on domestic manufacturers, and challenges for small businesses. At the time, the government argued that the deal did not adequately address India’s concerns over market access and safeguards against unfair trade practices.
RCEP, led by the Association of Southeast Asian Nations (ASEAN) and including China, Japan, South Korea, Australia, and New Zealand, represents nearly 30% of global GDP and trade. India’s re-entry could provide new export opportunities while also reshaping regional trade dynamics.
Analysts say a return to RCEP could help India diversify its export markets at a time when its reliance on Western economies is proving increasingly vulnerable to political and tariff disputes. Stronger ties with East Asia could also boost India’s role in regional supply chains, especially in electronics, renewable energy, and pharmaceuticals.
However, concerns remain within domestic industries. Farmer groups and small manufacturers fear that renewed competition from cheaper imports, particularly from China, could hurt local livelihoods. Policymakers are now considering whether protective clauses, tariff safeguards, and stricter rules of origin can make RCEP membership more favourable to Indian interests.