Can an agreement with the world's largest trading block of India help beat tariff heat?

Copyright © HT Digital Streams Limit all rights reserved. Could an agreement with the world’s largest trading block be India’s strategic response to Trump’s tariff -to -beami? File Photo: Chinese President Xi Jinping and Prime Minister Narendra Modi, India, meet on the sidelines of the Brics Summit in Kazan, Russia October 23, 2024. (Reuters) Summary India has drawn from the negotiations six years ago to join the RCEP trading block over a high trade and the potential Manufacture of sectors. But the developing trade dynamics with the US now justify a re -application to the treaty. The US -India relationship has obtained over several issues, especially trade, over the past few months. It started pushing India to the East, with Prime Minister Narendra Modi visiting Japan and later China after a seven -year void. The timing of the visits coincides with the US penalty -added tariff of 25%, which will switch from Wednesday to the purchase of Russian oil in India. The potential tilt to the East can also reflect in India’s strategic shift on the trade front. Last week, Mint reported that India weighs its options to rejoin the local comprehensive Economic Partnership (RCEP), the eastern trade block that left it almost six years ago. The RCEP consists of 10 Asean countries -Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam -with Australia, China, Japan, New Zealand and South Korea. While India has drawn from the negotiations to join the RCEP six years ago due to concerns about high trading deficit with China and the potential impact on domestic industries, especially in the agricultural, dairy and small manufacturing sectors, the developing trade dynamics with the US guarantee a re-application to the point. A mint analysis of the export of India shows that the country has tilted more to the US over the past few years, which has drawn its share of overall exports before the RCEP countries. However, there are several sectors where the RCEP export share is far behind the US, leaving the possibility of channeling exports to the 15 countries block. In the last decade, the exports of India have tilted to the West, as the US has emerged as the largest market for its goods. The US share in India’s exports rose from 13.5% in 2014-15 to almost 20%. During the same period, the export of India varied with the RCEP block. At its peak, in the pre-pandemic period, 21% of the exports of India went to the RCEP countries, but in the post-advanced period, the share remained in a series of about 17%. Although the overall share gap between the US and the RCEP may be small, there are different sectors, such as electronic goods, pharmaceuticals and jewelry and jewelry, where the RCEP is far behind the US. These are the sectors that India can tap through the RCEP treaty. However, India’s turbulent past with the trading block can make an agreement difficult. India’s position to protect its agricultural and dairy sector could be a point in the RCEP treaty, as in 2019, and in trade with the US. In December 2024, Trade Minister Piyush Goyal reiterated in the Rajya Sabha that the Treaty did not address the concern of India. However, against the backdrop of US pressure on the export of India, the country will have to investigate alternative options. Impression Game India enjoys the label of the world’s fast -growing great economy, an upcoming economic superpower, and to a certain extent a balancing power for the growing dominance of China. However, India’s perception among Southeast Asian countries is less favorable than that of many of the RCEP countries, although it shows signs of improvement. A recent survey of influential votes of the ASEAN member states, including media, policymakers, civil society and the academy, performed by the Iseas-Yusof Ishak Institute, show that the perceptions of India improved in 2025 compared to the previous year. Although only 2.9% of respondents noted that India had the most economic power in Southeast Asia in 2025, it was an improvement of 0.6% in the previous year. India did relatively well whether it was the best third party hedging against the US China rumble, with 13.5% agreed with the statement. The improved perception of India among Southeast Asian countries offers the country the opportunity to investigate possible transactions and storeys to hedge against disruptions of US rates. Catch all the business news, market news, news reports and latest news updates on Live Mint. Download the Mint News app to get daily market updates. More Topics #In Maps #General Factors Read Next Story