US to get out TPP will favour India
What is TPP?
To know more about TPP-Trans Pacific Partnership
The proposed free trade agreement was seen as a threat to exports from India to those countries in TPP involving cost and other operational clearances and feared that trading to members was a hassle even though India has multi-lateral trade agreements. It was also said that India will lose close to $2.7 Billion as more and more countries at the pacific rim to join TPP.
To put the TPP’s impact on India, It would have affected the export of both raw materials & intermediate products to TPP members. India has been already taking a hit on exports with dropping from 1.68% in 2014 to 1.62% in 2015. This move by trump is seen a positive sign to India’s exports.
Even though Australia might be looking for an alternative to China in TPP, Without US, TPP will make less sense & eventually it will open up closed gates for India to increase the number from $79.5 billion as of 2014-2015 to TPP numbers.
Centre for Policy Research has said even though there is an expectation of 11000 tariff lines to be freed, It will other way pave the way to lose the competitiveness of Indian products as more competition will have access to these markets.
Moreover, US moving out of TPP will help India to have access to more product avenues of exports