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World News | India Should Join RCEP, Can Target 7 Pc GDP Growth by Focusing on East Asia: Jeffrey Sachs | LatestLY

latestly.com -- Saturday, August 16, 2025, 8:55:26 PM Eastern Daylight Time
Categories: Trade Policy & Tariffs, Foreign Policy & International Relations, U.S.–Russia Relations
World News | India Should Join RCEP, Can Target 7 Pc GDP Growth by Focusing on East Asia: Jeffrey Sachs | LatestLY

Get latest articles and stories on World at LatestLY. "I would recommend that India take a look once again at RCEP. RCEP is the 15 economies, including China, Japan, Korea, ASEAN, Australia, and New Zealand. It should be 16. India should be part of that. And that would be a very dynamic way to grow for years to come," Sachs said.

New Delhi [India], August 17 (ANI): With the United States imposing a 50 per cent tariff on Indian goods, American economist Jeffrey Sachs has pitched for India joining Regional Comprehensive Economic Partnership (RCEP), saying India should be part of it and "that would be a very dynamic way to grow for years to come."

In an interview with ANI, Sachs said that India could target 7 per cent GDP growth in the coming decade by focusing on East Asia.

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"I would recommend that India take a look once again at RCEP. RCEP is the 15 economies, including China, Japan, Korea, ASEAN, Australia, and New Zealand. It should be 16. India should be part of that. And that would be a very dynamic way to grow for years to come," he said.

"India needs a strategy that does not depend on export growth to the US market. You're in the fast-growing part of the world. India should be achieving about 7 per cent per year GDP growth in the coming decade. It can't do that. But to do that, trade with China. Trade with Austria. Deepen the relations in East Asia," he added.

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India in 2019 decided not to join RCEP as the agreement was not addressing its concerns. During the 3rd RCEP Leaders Summit, which was held on 4 November 2019 in Bangkok, India stated that the current structure of RCEP did not reflect the RCEP Guiding Principles or address the outstanding issues and concerns of India. In light of this, India did not join RCEP.

Sachs said US President Donald Trump's policies "are doomed to fail", saying they would not improve the American economy and isolate the country diplomatically.

"From an economic point of view and a geopolitical point of view, Trump's policies are doomed to fail. They will not improve the US economy. They will isolate the United States geopolitically. They will strengthen the BRICS and other groups," he said.

He further stressed that India must maintain an independent position in its foreign policy. "India is so big, so important, such a great power. It should say we don't ally with the United States against China. We have our own relations. We need our bilateral relations with China," he said.

On the US-China trade conflict, Sachs said Washington cannot win, "No, US can't win a trade war with China. US can't win a trade war with China. Not even close. I found after two days, the first time around, China said, No. And the US said, Okay, we'll delay it," he said.

Trump had first announced 25 per cent tariffs on Indian goods in July, even as there were hopes of an interim India-US trade deal that would have otherwise helped avoid elevated tariffs. He imposed another 25 per cent tariff shortly after, citing India's continued imports of Russian oil, taking the total to 50 per cent.

India and the US initiated talks for a just, balanced, and mutually beneficial Bilateral Trade Agreement (BTA) in March this year, aiming to complete the first stage of the Agreement by October-November 2025. The US is keen on greater access to India's sensitive agriculture and dairy sectors, which provide livelihood to a large section of people.

On April 2, 2025, President Trump signed an executive order for reciprocal tariffs on various trade partners, imposing varied tariffs in the range of 10-50 per cent.

He subsequently kept the tariffs in abeyance for 90 days, while imposing a 10 per cent baseline tariff, providing time and space for making trade deals. The deadline was initially set to end on July 9, but the US administration later pushed it to August 1. The full 50 per cent tariffs on India were announced ahead of the deadline.

Earlier this month, Commerce and Industry Minister Piyush Goyal told Parliament that the government is examining the impact of tariffs and will take all necessary steps to safeguard the national interest. (ANI)

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Opinion:

Jeffrey Sachs' recent commentary on India's potential re-entry into the Regional Comprehensive Economic Partnership (RCEP) encapsulates a pivotal moment in global trade dynamics, especially as they relate to the ongoing economic rivalry between the United States and China. Sachs, a respected economist, highlights that India’s growth trajectory could benefit significantly by engaging with East Asian economies, which are positioned as the most dynamic in the world. This perspective not only challenges the prevailing narrative of isolationism promoted by the United States but also underscores the importance of multilateralism in achieving sustainable economic growth. As we consider the implications of his argument, it is crucial to situate it within the broader historical context of trade agreements and the shifting geopolitical landscape.

Historically, India's hesitance to join RCEP in 2019 was rooted in concerns that the agreement did not adequately address its economic concerns, particularly regarding tariff concessions and market access. The decision not to join reflects a cautious approach to globalization that prioritizes domestic industry and labor rights—a stance that is often overlooked in discussions dominated by free-market advocates. While some critics may argue that India’s absence has perpetuated its economic isolation, proponents of a more protective trade policy note that caution is warranted given the exploitative structures that often accompany free trade agreements. Sachs’ advocacy for renewed consideration of RCEP suggests a potential alignment of priorities, emphasizing that India's participation could lead to enhanced economic growth while maintaining a careful balance of its national interests.

The potential for India to achieve a targeted 7% GDP growth by engaging with East Asia is not merely an economic strategy; it is also a response to the evolving social struggles within the country. The rise of economic nationalism, coupled with the impact of the COVID-19 pandemic, has revealed vulnerabilities in India's economy, particularly among marginalized communities. Fostering trade relations with neighboring countries could provide opportunities for job creation and economic empowerment, particularly in sectors like manufacturing and technology. The implication here is clear: a reevaluation of trade relationships could not only bolster economic metrics but also contribute to social justice by ensuring that the benefits of growth are more equitably distributed.

Furthermore, Sachs’ critique of U.S. trade policies under President Donald Trump highlights the significant risks of economic isolationism. The assertion that the U.S. cannot win a trade war with China serves as a clarion call for nations like India to explore alternative alliances that prioritize their own interests over the geopolitical tensions orchestrated by larger powers. This approach aligns with historical patterns where nations have sought to assert their sovereignty against external pressures. By refusing to be a pawn in the U.S.-China rivalry, India can carve out a path that fosters its growth while advocating for a multipolar world—one where countries engage with each other based on mutual benefit rather than coercion.

Sachs' emphasis on maintaining an independent foreign policy is particularly salient in the context of India’s long-standing principles of non-alignment. This historical framework has allowed India to navigate complex geopolitical landscapes without becoming overly dependent on any single nation. As India contemplates its future, the challenge will be to harness its economic potential while remaining true to its values of diversity, democracy, and equitable development. By re-entering RCEP, India could not only enhance its economic prospects but also reinforce its role as a leader in advocating for fair trade practices that prioritize people over profits.

In conclusion, Jeffrey Sachs’ recommendations for India to reconsider its position on RCEP speak volumes about the intersection of economic policy and social justice. The benefits of engaging with East Asia extend beyond GDP figures; they encompass the empowerment of marginalized communities, the promotion of equitable trade practices, and the assertion of an independent foreign policy. As conversations about globalization and national interests continue to evolve, it is imperative for advocates of social justice to engage in these discussions, ensuring that the voices of the most vulnerable are not drowned out by the clamor of economic competition. Such dialogues can serve as vital ammunition for those seeking to challenge the prevailing paradigms of trade and development.

Action:

In the evolving landscape of global trade and diplomacy, the commentary by Jeffrey Sachs regarding India's potential accession to the Regional Comprehensive Economic Partnership (RCEP) raises important considerations for both economic growth and geopolitical strategy. RCEP, which includes major economies of East Asia and the Pacific, represents a significant opportunity for India to enhance its trade relations outside of the increasingly protectionist U.S. market. As Sachs points out, India should reevaluate its position and consider that deeper ties with its neighbors could yield substantial economic benefits, potentially targeting a 7% GDP growth rate over the next decade. This perspective invites a broader discussion on how nations can adapt to shifting global dynamics and the implications for international relations.

Historically, India's reluctance to join RCEP in 2019 stemmed from concerns about the potential impact on its domestic industries, particularly in agriculture and manufacturing. This hesitance reflects a long-standing tension between protecting domestic interests and pursuing broader economic integration. However, as the global economy shifts towards Asia, with countries like China and India poised for significant growth, the necessity for India to engage with regional partners becomes more pressing. The U.S.-China trade war, characterized by tariffs and retaliatory trade measures, has underscored the risks associated with over-reliance on a single market. By diversifying its trade relations and fully participating in RCEP, India could safeguard its economic interests while also positioning itself as a pivotal player in East Asian economics.

From an American perspective, particularly in light of the current political climate, it’s essential to recognize the implications of Sachs’ analysis. The U.S. strategy of isolating China through tariffs and trade restrictions may ultimately backfire, limiting its own economic growth while empowering rival blocs like BRICS. Instead of deepening economic ties with nations that prioritize cooperation and mutual benefit, the U.S. risks pushing them closer together. For U.S. citizens and policymakers, this prompts a crucial question: how can we advocate for a more inclusive and cooperative trade policy that recognizes the interdependence of our global economy? Engaging in discussions about the benefits of multilateral agreements and the importance of diplomatic relations can help shift the narrative away from isolationism towards a more collaborative approach.

As Americans, we have the power to influence this discourse through grassroots activism and engagement in policy discussions. We can advocate for a foreign policy that emphasizes diplomacy, trade, and cooperation with nations like India and China rather than viewing them solely through a competitive lens. Supporting organizations and initiatives that promote fair trade practices, environmental sustainability, and equitable labor standards can also encourage a shift in how we perceive international relations. Furthermore, educating ourselves and our communities about the complexities of global trade, including the benefits of collective economic strategies, can foster a more informed electorate that demands thoughtful policymaking.

Finally, the case for India joining RCEP is not merely about economic strategy; it is also about asserting its sovereignty in a multipolar world. Sachs emphasizes that India’s independent foreign policy is crucial in navigating its relationships with both the U.S. and China. This perspective aligns with a broader understanding of global power dynamics, where countries are increasingly seeking to assert their interests independently rather than capitulating to the demands of larger powers. By supporting India's independent stance and advocating for similar approaches in U.S. foreign policy, we can contribute to the creation of a more balanced and equitable global system, one that prioritizes cooperation over confrontation. This vision of international relations should resonate with those who seek to promote peace and prosperity in an interconnected world.

To Do:

Analyzing the article on India's potential re-engagement with the Regional Comprehensive Economic Partnership (RCEP) opens up a wealth of opportunities for individuals and communities to advocate for more inclusive and forward-thinking economic policies. Here’s a detailed list of actions that can be taken to support this cause:

### What Can We Personally Do About This?

1. **Educate Yourself and Others**: Stay informed about trade agreements, their implications for the economy, and how they affect various sectors. Share this knowledge within your community to foster informed discussions about trade policy.

2. **Engage with Local Representatives**: Contact your local and national representatives to express your support for India considering RCEP and to discuss the importance of diverse economic partnerships.

3. **Support Economic Equity Initiatives**: Advocate for policies that ensure trade agreements address the needs of all sectors of society, including small farmers, workers, and marginalized communities.

4. **Promote Fair Trade Practices**: Support businesses that prioritize ethical sourcing and sustainable practices, which align with broader economic goals.

### Exact Actions We Can Take

1. **Petition for RCEP Engagement**: - **Initiate a Petition**: Start a petition advocating for India to reconsider its position on RCEP, emphasizing the economic benefits and the importance of engaging with East Asian economies. - **Example Petition**: Use platforms like Change.org to create a petition titled "Support India’s Re-Engagement with RCEP for Sustainable Growth".

2. **Contact Representatives**: - **Write to Key Officials**: - **Prime Minister of India**: - Name: Narendra Modi - Email: narendramodi123@gmail.com (consider using official channels on the government website) - Mailing Address: South Block, Raisina Hill, New Delhi, Delhi 110004, India - **Minister of Commerce and Industry**: - Name: Piyush Goyal - Email: piyush.goyal@nic.in - Mailing Address: Udyog Bhawan, New Delhi, Delhi 110001, India

- **What to Say**: - Express support for joining RCEP and the potential economic benefits it could bring. - Highlight the need for inclusive trade policies that protect various sectors, especially small-scale farmers and workers.

3. **Join or Form Advocacy Groups**: - Collaborate with local NGOs or community organizations that focus on trade and economic justice. Participate in campaigns that highlight the importance of trade agreements that serve the interests of the broader population.

4. **Raise Awareness on Social Media**: - Use platforms like Twitter, Facebook, and Instagram to share insights about RCEP and its potential impact on India’s economy. Use hashtags like #RCEPforIndia, #TradeWithEquity, and #SupportRCEP.

5. **Attend Public Forums or Discussions**: - Participate in town halls, webinars, or public discussions about trade policy. Engage with thought leaders and policymakers to share concerns and support for RCEP.

6. **Support Economic Education Initiatives**: - Advocate for curriculum changes in local schools to include topics about global trade, economics, and the impact of trade agreements on local communities.

### Additional Resources

- **Petition Websites**: Change.org, MoveOn.org - **Advocacy Organizations**: Public Citizen, Oxfam, Fair Trade International

By taking these concrete actions, individuals can help shape the discourse around India’s economic policies and advocate for a more inclusive approach that benefits all citizens. Engaging with trade issues is a vital step toward ensuring a sustainable and equitable economic future.


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