$660 billion Vs $36 billion. What do these numbers tell about RCEP?

How about other countries?

India has had a trade deficit with ASEAN countries, which are also part of the RCEP, in each of the years, in the 2000-01 and 2018-19 period. Overall, India's trade deficit with ASEAN countries is $134 billion in these 19 years.

With which country does India have the highest deficit?

China. Over the 19 years, the trade deficit is equal to $487 billion. The deficit was $0.7 billion in 2000-01, and that ballooned to $53.6 billion in 2018-2019.

Now let's look at another number.

$36 billion

The foreign direct investment into India from Japan, South Korea and China from 2000-01 to 2018-19.

What percentage is that of the total?

Japan has substantial share, with $30 billion. South Korea invested $3.6 billion, and China - with which India has the highest trade deficit - has invested $2.2 billion over these 19 years.

What about ASEAN countries?

The 10 countries have together put in less than $90 billion over the period. A huge chunk has come from Singapore alone, of $82 billion. Singapore, which is a favoured tax haven, is the second largest FDI source for India, after Mauritius.

So, what is the point?

Clearly, these countries have benefited more from India, and not the other way round. And neither have these nations invested heavily in the Indian market. So the moot question is if the RCEP will benefit India, as free trade agreements with these nations may further increase the deficit.

But even Indian companies will be able to freely trade, isn't it?

That's right. But some of these countries have steep non-tariff barriers, that may be too high for Indian companies to climb. While registration is some of the countries is tedious, in others, additional requirements and disclosures are needed.

What could be the solution?

A combination of measures that would raise non-tariff barriers in India, and incentives that will push Make in India agenda.