Exiting RCEP may backfire as India could lose market share to trade bloc

Modi pulled out of what's now the world's largest free-trade agreement to appease farmers and touted the exit as a victory for India's poor

India’s key manufacturing exports may lose market share to a China-backed Asian trade bloc, from which Prime Minister Narendra Modi walked away last year to protect the interests of local farmers and industry.

Some of India’s top 10 exports such as engineering goods, chemicals, pharmaceuticals, and electronics face erosion in market share on account of lower tariffs that members of the 15-nation Regional Comprehensive Economic Partnership enjoy for trading among themselves, according to economists. To put things in perspective, engineering products alone account for a quarter of the nation’s merchandise exports.

“In sectors where India is somewhat contributing to the