Businesses and farmers applaud Prime Minister Modi's decision to reject the RCEP trade agreement

MUMBAI: Farmers and businesses praised the Prime Minister on Tuesday Narendra Modi The decision to opt out of an extensive Asian trade pact, with the country's largest dairy producer, Amul, thanks the prime minister for supporting livelihoods.

The rejection of New Delhi at 11 am Regional Integral Economic Association ( RCEP ), which should represent 30 percent of the world's GDP and the cycle of half the world's population, occurs when India fights the slowdown in manufacturing and consumption.

The pact would have increased India's access to other Asian markets, but New Delhi feared that its national industries would be affected if the country were flooded with cheap products made in China, particularly in key sectors of employment such as agriculture and textiles.

In a tweet Monday night, Amul applauded PM Modi 's exemplary leadership and support to dairy farmers, who would have been exposed to more competition under the RCEP.

His vision of supporting his livelihoods will help double his income and strengthen India, he said.

Praveen Khandelwal, general secretary of the leading lobby group, Confederation of All Merchants of India (CAIT), issued a statement to the AFP warning that the agreement would have allowed Chinese manufacturers to overwhelm the Indian market with Made In China products at prices very low. . thus creating an imbalance.

B M Singh, coordinator of the Coordination Committee of India Kisan Sangharsh, said that the rejection of the agreement was a great victory for the farmers.

We should not go for an open agreement like the RCEP simply because we can't compete with other big countries, Singh told AFP.

It's like throwing someone weighing 25 kilograms (55 pounds) into a boxing ring and asking him to compete with an opponent weighing 100 kilograms.

But experts warned that New Delhi, which has a long history of protectionism, may lose while trying to become a more competitive economy worldwide.

In an era in which manufacturing requires the ability to integrate more, and not less, into global supply chains, this decision seems at the moment to make it more difficult to boost manufacturing in India, said the Council’s main partner of Foreign Relations, Alyssa. Ayres wrote.

The central issue for the Indian government is not in the drafting of a trade agreement, but in the competitiveness of the Indian economy, Ayres added in a blog post that underlines the need for New Delhi to undertake new reforms to boost growth.

However, India's decision is considered a blow to the agreement, which now includes the 10 states of the Association of Southeast Asian Nations plus China, Japan, South Korea, Australia and New Zealand, but not the United States.

The remaining members intend to sign it next year after reviewing an agreed draft text.