Trade in India: The effects of tariff liberalization
DOI:
https://doi.org/10.58445/rars.2872Keywords:
Trade deficit, comparative advantage, India, tariff liberalizationAbstract
This paper investigates the reasons for India’s withdrawal from the Regional Comprehensive Economic Partnership (RCEP) and also investigates the reasons for the growing trade deficit between India and China. The paper compares India’s economy to other emerging markets in the RCEP, like Vietnam, and highlights the benefits that Vietnam received from its involvement in the RCEP. This paper reviews the strengths and weaknesses of both the Indian and Chinese economies and explains concepts like consumer/producer surpluses and comparative advantages. Additionally, further research is done on the growing consumer market in India, which is primarily caused by India’s growing labor force. The objective of this paper is to convince the reader that India should rejoin the RCEP, under certain conditions. The paper argues that reintegrating in the RCEP will reduce reliance on China for imports, while also protecting India’s own industries by setting certain guidelines for the agreement.
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