Introduction
The Regional Comprehensive Economic Partnership (RCEP) is the world’s largest trade bloc, covering nearly 30% of global GDP and population. India’s decision in November 2019 to stay out of RCEP was widely debated, with critics arguing that India was missing a major opportunity for Asia-Pacific integration.
However, more than six years later, India appears to have crafted a strategic alternative — securing most benefits of RCEP without incurring its biggest risk: a full-fledged Free Trade Agreement (FTA) with China. The conclusion of the India–New Zealand Free Trade Agreement (FTA) on December 22, 2025, marks a key milestone in this strategy.
What is RCEP?
RCEP includes:
10 ASEAN countries: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam
Plus Australia, China, Japan, South Korea, and New Zealand
The agreement aims at:
Deep tariff reductions
Integrated supply chains
Common rules of origin
Services and investment liberalisation