Rs 26,000 crore revenue lost to service Asean FTA

In a worrying trend, findings suggest that revenue foregone by India due to the trade agreement with Asean has jumped more than twice to nearly Rs 26,000 crore in 2018-19. While the exports to the 10 Asean economies rose by 9% YoY & stood at US$ 37.4 billion; the country’s imports were up by 25% and pegged at US$ 59.31 billion.

The reports have led to fears of the revenue that the government stands to forgo if it signs the Regional Comprehensive Economic Partnership (RCEP) accord. It is estimated that the government would plausibly have to incur a loss of Rs 60,000 crore as a result of this trade pact.