Textile Trade of India with RCEP Members: A General Equilibrium Assessment

Abstract

The study quantified Indian textile trade with selected Regional Comprehensive Economic Partnership (RCEP) countries, including Australia, China, Japan, Malaysia, South Korea, and Vietnam, based on their proportional share of the Indian textile trade to analyze the impact of RCEP on the Indian textile trade. The primary objective was to investigate the impact of a 10 per cent reduction in existing Indian tariffs with selected RCEP nations through Global Trade Analysis Project (GTAP) modelling. The study demonstrated that if India reduced tariffs on textile imports, it would allow a flood of imports from other competitive countries. As per the results, India will only achieve prosperity when selected RCEP nations reduce or eliminate their tariffs. The decision to withdraw from RCEP seems reasonable regarding its textile exports from India.