Should India join the comprehensive and progressive agreement for Transpacific partnership? Give arguments to support your point of view.

With withdrawal of US from transpacific partnership agreement, the trade agreement has reinvented itself in the form of comprehensive and progressive agreement for transpacific partnership.

• Since UK is also exploring the possibility of joining the agreement, the trade bloc would be one of the largest. This would provide India with numerous opportunities to enhance its exports.
• If Britain were to join the TPP, membership in it would give India access to the financial markets in the City of London and British markets for Indian products. 
• It would also provide India access to some of the world’s largest producers of vital minerals. TPP member Chile is one of the world’s largest producers of copper, while Australia is a major source of both iron ore and coal.
• TPP will aid India in forging its entry into global value chain. This would give boost to make in India.

But the challenges include:

• As a corollary India would also be required to open its market to the TPP members. It would hurt the domestic manufacturers as the Indian domestic industry has to compete with the Industries from global superpowers and Asian tigers who are already part of global value chain.
• Proposed stringent norms on labour, environment and IP would adversely affect the potential of India.

Though TPP offers huge benefits the challenges it poses are also strikingly large. Indian economy is not mature enough to cater to the challenges and exploit the opportunities arising from ceding to TPP. Hence India for now must concentrate on strengthening its economy so that its economy becomes resilient enough to absorb the challenges and exploit the benefits.

Topics: GS-II: Bilateral Regional and Global Groupings and Agreements