Analysts suggest dropping out of RCEP may hurt Indian exports

Uncomfortable questions are cropping up following India's last-minute decision to withdraw from the proposed Regional Comprehensive Economic Partnership, or RCEP. Is India overly circumspect? Is it committing another historic blunder?

India, which had been party to the talks to create an enormous Asia-Pacific free trade area, pulled out of RCEP talks on Nov 4 amid fears of its lingering trade deficits and worries that opening its economy would undermine its already fragile domestic manufacturing base.

However, an Indian economist told China Daily that India's decision to back out of the RCEP - touted as the world's most wide-ranging free trade agreement - may signal that it lacks all interest in free trade agreements, or FTAs.