India Unlikely to Sign China-Backed Asia-Pacific Trade Pact, Says RSS Economic Wing
As reports arrived that Indian government is mulling reap economic profits from the US-China trade war, Hindu nationalist group, the Rashtriya Swayamsevak Sangh said that India is unlikely to sign a China-backed Asia-Pacific trade pact because of opposition from industry and farmers.
New Delhi, August 2: As reports arrived that Indian government is mulling reap economic profits from the US-China trade war, Hindu nationalist group, the Rashtriya Swayamsevak Sangh said on Friday that India is unlikely to sign a China-backed Asia-Pacific trade pact because of opposition from industry and farmers. With this statement, India's prospects for creating a giant free trade zone is most likely to be affected.
It is to be known that when trade ministers from 16 countries mulling negotiate the terms of the Regional Comprehensive Economic Partnership (RCEP) in Beijing, Hindu nationalist group's latest statement would hit efforts to break down barriers over access to markets and lists of protected goods. RSS even opined that India's support for the treaty would be little. India Has Excellent Opportunity to Reap Profits From US-China Trade War, Says Centre
Expressing concerns on the issue, Ashwani Mahajan of the Swadeshi Jagran Manch (SJM) said, as quoted by global news agency Reuters, "During the wider consultations, none of the sectors appreciated the idea of going ahead with RCEP." Adding more, he said, "Given the opposition from all the sectors, it is not likely that the government will go ahead with the pact."
However, seeking to strike a balance between tariff cuts and domestic sensitivities, the Indian trade ministry had earlier stated that it remains to engage in talks over the pact, which includes 10 members of the ASEAN grouping of Southeast Asian nations and six Asia-Pacific countries.
According to the RSS's economic wing, the pact - to be concluded by December 2019 - would force cuts in tariffs on farm goods, leading to cheaper imports, such as dairy products. Along with this, several industry groups in India, such as steel, engineering and automakers have opposed New Delhi’s participation in the pact. They fear that the pact might be a threat of cheaper imports from China. RBI's Higher Interest Rate a Major Reason For Slowdown the Economy, Says RSS' Wing
Meanwhile, SJM hit out at Reserve Bank of India for not lowering rate of interest even when the inflation is down to 2 per cent, holding it responsible for the current slowdown in the economy.
(The above story first appeared on LatestLY on Aug 02, 2019 06:23 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).