What’s RCEP, why India walked out & lure of protectionism versus creative destruction of capitalism 

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Also, One of the biggest downside is that RCEP didn't allow India to export services and also provide visa free employee access to their markets

This episode has been more of a generalised endorsement of free trade agreements, rather than a specific scrutiny of India's interests in joining or withdrawing from the RCEP. China is a nation that weaponises trade, and I believe, the Indian establishment is wary of that. Once you become dependent on Chinese trade, either imports or as an export destination, it is likely that the Chinese will hold you to ransom at some point of time. The best example today is that of Australia. So, the dependence on Chinese goods has to be shaken off, even if it means economic loss in the short term. Since such an excuse is not publicly possible internationally, in this era of free trade, so the reason shown has been that of protecting domestic industry. It is true that RCEP is not only about China, but they are very much the big brother among the RCEP signatories.

We r playing a game of capitalism with socialistic blood

Personally, I am more inclined to support Professor Ila Patnaik's assessment of India not joining RCEP over this analysis. Free trade is great but head to head India can never compete with China (not in the near future) on manufactured goods and it will result in a surge of made in China products in India. This will only serve to benefit China at the cost of India's national security and economy.

India is not allowed free access to service sector. I am into Import and Export. I know how people are misusing free imports.

India's premium export is services/software. RCEP doesn't include those, so it won't have been that beneficial to us either.

Watching this from North America and you’re a gem with journalism analysts with no bias with your views. Thank you so much for your videos!

2 cents: Simple! More Trade -> Less Taxes Less Trade -> More Taxes

Can I get heart from you, I am watching since 2017 when I was in 10th Std.

A smart person is he who accepts his ignorance instead of yapping about something he knows nothing about ,Shekhar sir is humble enough to admit that he does not know much about the subject ,this is why you command respect sir . Nevertheless an insightful episode. Keep up the good work !

Why is there so much noise for RCEP when India is already in free trade agreements with most of South Asian countries

The actual part starts at 5:07

Wow! Shekhar Sir... You are in such great form at the moment that you can fill in for both Virat and Rohit on the Australia tour 😊

Shekhar Gupta is a very good story teller. Let me sum up in 1 line, " by staying out of RCEP, Modi is taking India to pre 1991". To say this he used 20 minutes that also with out related logic. Now I add 2 points: 1. In your channel Prof. Ila Pattanaik had explained why it's fine for India to be out of RCEP. I guess shekhar has not listend to her. 2. Listen to Sanjeeb Sanyal : He explained why India is not going back to protectionism even opting out of RCEP. Shekhar said India has FTA with all Asian nations who r part of RCEP. This is contradictory. If India has FTA with all these nation except China, then how come coming out of RCEP will hurt India. He does not explain this.

I felt that today's episode lacked more detailing abt RCEP...and was just more about free markets and capitalism

I love the manner in which Mr. Gupta acknowledges the research and efforts of the younger journalists who do a lot of the spade work. Only a great team cash produce such excellent analysis and this behaviour goes a long way in shaping leadership in India.

Sir, please make a video on Power discoms in India. Why is that the cost of production of electricity is quoted much cheaper in India as compared to China yet the end user is charges much higher. And even then the discoms post a loss everytime and need frequent bailouts by the govt. Also, I think it's stupid India didn't join RCEP. Our dairy industry deserves to be destroyed if it can't compete with New Zealand. Services I agree could have been a part but India is just being left behind this way. Our Act-East policy, the Quad are all made useless by China by RCEP. Another failure for India on economical, diplomatic and security front.

Gupta ji has already liked 3 'first view' comments. He knows how to keep his viewers glued.

20-25 mins daily is booked for CTC.

We are already in tade deficit in China which enjoy a trade surplus of 70 billion$ for various products like phones, TV , laptops,chargers, many cheap plastic items during diwali etc. Isn't it enough competition for Indian industries to grow? please support if anyone agrees with me.

So finally BJP acknowledges and gives due credit to Congress for their contribution in 91's liberalisation 😀

Finally!! I have been waiting for these.

Am subscribing today. Would have liked to have an App. Done know what hey it’s so difficult? Like your journalism though may not agree with you always. Haven’t seen anyone else covering foreign relations and analysis. Appreciate

Few things I wish to bring it to your notice. 1. Modi Govt. has not reversed any liberal reforms, it's only with China and no other contry. 2. I am into the Import and Export andI fully agree with the policies of Modi Govt. China didn't have level playing policies. Capitalism with communist policies is a deadlier combination where govt. interference is very high. 3. I have watched Indian businesses particularly traders misusing. Result was evident 50 billion trade deficit. Even though we liberalised our economy not enough was done or due to corruption enough could be done to promote the Indian businesses. I fully agree with the views of Ms. Illa. China is using trade as a weapon which India can't afford to ignore. My full support to Modi govt.for not joining RCEP. I see this one cut the clutter is all about free trade.

"Why india is right not to join RCEP" Ilanomics The Print. Please respond SG Sir

I was doing my Business Management course when economy opened up and there were huge debate about end of Industries and return of "East India company". after nearly 3 decades India is doing better than a Hindu growth rate. Competition will kill Industries but will also give rise to new Indian competition to the world

You are one of the most authentic and credible voice I can find today on any matter from trade to defence to political matters to film to melody and even to IPL.

Once Again Shekhar ji you have proven that in the age of partisanship in the media, The Print has stood head and shoulders above the rest. Fantastic analysis as usual.

Yes Shekar you guessed right iam smart

Was waiting for this one. Thanks Shekhar Ji. Completely agree that India should have participated and tried to become more competitive instead of shying away.

It is an irony of India that it was the centre left party which started a more capitalistic approach and the right wing party that is going for more protectionism.

This is a common mistake that a lot of people are making. RCEP is not about avoiding comptition. RCEP is about giving Indian industry a chance. We did the same thing that SG is suggesting for our electronics and we had a flood of cheap Chinese electronics in India which demolished Indian players. Also, not because of better products but because of the cheap capital and artificial currency depriciation of China. Courtesy of which we still cant make our own processor chips. We avoided the same mistake with automobiles and today we have a thriving competitive market in all fields of automobiles. Indian companies are competing woth the best products out there. Creative destruction is not about just having competition. Its also about having all players on the same level. No wealthy country in the world has become so woth zero tarrifs. Read the book called ' Bad Samaritans'. China, US, UK everybody have protected their industry for some time to come on a level playing field. We also have to keep in mind that we have a strong domestic economy to make. It cant happen merely on the back of imported cheap products. It is necessary for Indian industry to develop. We cant compare ourselves directly with Asian countries like Singapore and SK. Current efforts need to be seen from a different lens. Its not about protectionism. Its about building a strong domestic industry. It doesnt discourage competition but leverages our size to compell international players to compete by making in India, which was not the case during the licence raj

One the most impactful cut the clutters!! In fact..The 'push child into water to learn swimming' line should be played again and again on speakers across all chowrastas in the country!!!

Shekhar ji, nice presentation. But I feel yours is a superficial and a simplistic assessment. If a to z imports are allowed too suddenly into India there will be unsustainable shock to the economy because of sudden inundation with cheap imported goods. The key is to smartly regulate imports and exports and emphasize on transfer of manufacturing technology. You will agree that Mr Modi has a good sense of business and is not naive. It is all an art of striking the right balance. The dynamic of a vast & complex country like India has to be different than say Cambodia or Vietnam especially when there is a provenly dangerous Captain in the RCEP. For Modi it is like making curd, right temperature and right duration and no shaking. Do it fast and you get a spoil. Thanks

Indian industry is still heavily dependent on MSME......they can't produce at cheapest rate with no innovation......we want monopoly like RIL, Tata, Mahindra, Adani etc to grow more. Then we will be able to compete internationally.

This is why I contribute to the Print every month. Grateful for such material.

Contradicting M/s Ila's views in print. I tend to agree with her views

Shekhar should ideally not venture into technical economic issues like RCEP. He should have conducted a Q&A session with Illa and he would have got all his wrong issues, ideas and concepts cleared. The answers to many questions are highly nuanced and conditional on many assumptions and factors. That said, India has taken a right decision as of now to remain out of RCEP. But India must get ready in next 3 to 5 years by way of massive structural reforms to do world class manufacturing and export. In the meanwhile, existing trade agreement with ASEAN is good enough but we should get the deals with USA and Europe done quickly.

I am surprised that those paragraphs are the Government of India documents.

The very immediate next video suggested is "Why India is right not to join RCEP trade deal" by ThePrint's Economics expert. Not that you cant have difference of opinion within ThePrint's team, but i'd rather believe an economist who knows the nuances -- instead of just 'free-trade = goood | tariff = baaad'.

India needs more journalists like you sir. ❤️

Good to see India not participating the RCEP! No India no troubles! Now India is on your own!

Only cronies have changed but still crony capital system is intact.

Shekhar Sir, I am big fan of your "unconventional takes" on different subjects. Recently, I was reading a book named Tyranny of Merit which eloquently argues that we live in an age of winners and losers - events like Brexit or the rise of Trump are pushbacks against this culture of meritocracy. I am a big votary of competition and appreciate the concept of "constructive destruction". My question to you is this - how do we strike balance as a society?

When shekhar gupta says UPSC , then we all smirk .

journalist teaches scientists in ISRO journalist teaches polititions journalists teaches doctors journalists teaches police Journalists teaches economists too

I have reached the END and was still waiting for reasons why we had to step out of RCEP... Rather the video has much explained the PROS and CONS of being part of trade (which is quite evident for any one following this topic) Seems this is a topic drilled down with a specific vested interest without revealing the clear picture... After all, point being made is as if we dont want trade at all with anyone which is definitely not the case...

Just added myself to the list of subscribers! Cut the clutter & National interest are like my knowledge tonics! It’s honest, comprehensive, straight forward & most importantly unbiased. Even though I don’t necessarily agree with everything but I do believe it’s honest & sincere. So happy to support true journalism!

Hindalco and Grasim are in NIFTY index however.

I think you are confused. Protectionism is when you do not allow the foreign companies to manufacture in India. They do not make in India when they can simply export to India.

Thanks Guptaji because of this ctc i remembered Abid Hussain committee for small and medium scale industries and " Na khatam hone wali kahani" written by Vp singh🙏.

15:33 That’s one spooky smile...

The amount of knowledge I have gained from cut the clutters about varied topics , almost feels criminal to watch it for free . SG tussi great ho sirji!

UPSC Janta hit a like 🙏

Gupta ji, some time free trade might ruins small scale industries and it happens in USA over time. Thousands of workers lost their jobs. Coming to your analysis on PV’s(1990s) open market and that time China not a WTO member. The industries survived with other markets that time. China came with bang in 2001 to WTO and some sector industries didn’t survive in these 20 years in many countries. Some how few Indian industries survived with these so called protectionism I believe. Your comparison seems orange(1990s) and apples(2020). Your comment on this plz?

I disagree with SG. had it not been protectionism, China would never be able to create Alibaba, Huwaei, Tencent.

Good luck for The Print to grow further Have been an avid follower of the content of The Print. I have a suggestion for making Cut The Clutter in a multilingual manner especially coming up atleast with the same content in 3-4 major languages spoken in country to expand the audience base ,thus improving the content dissipation. Thanks

When I will get a job.. I wil pay.. Till then sry for delay

Shekhar ji your report though based on data, has missed some points. First, in RCEP, India wanted corresponding liberal approach towards free movement of labour as well. India with a large pool of skilled labour as its strength was right in asking for it. However while these countries wanted Indian market they did not want Indian labour. Secondly, most of the FTA signed by India with South East countries were abused by other party to re-export chinese products. I remember just a few years back, Indonesia used to export more gold to India than it actually produced. India has not benefitted from FTAs with any South East country. Thirdly, the reforms of 1990s were not export oriented. They were basically meant to unshackle India's capitalism from Inspector Raj. The reforms succeeded because it was our good luck, that we have young and visionary team of industrialists taking charge at the same time. Ratan Tata, Anand Mahindra, Aditya Birla, Narayan Murti, founders of biocon, yes bank, icici bank, hdfc etc to name a few.

Beautiful background, Shekhar. I really appreciate your aesthetic sense.

Thank you Mr Gupta and The Print for making an Indian liberal perspective on these important regional and global issues available on YT. Good vibes from Sweden, keep it up!

18:00 the document is Economic Survey of 2020 put together by CEA K Subramanian

After investing 28 minutes in listening you I only get a sense that what you said in the beginning was absolutely right- - " one should not try to wade into those subjects of which he may not have sufficient knowledge". You kept on telling stories and scratching perifiral surface without ever getting into the heart of the subject you intended to declutter.

I felt like video was ending at 5th minute but starts after that :p

what the gov. needs to understand is that a free Trade Agreement works both ways and through signing the RCEP india and its products get a free access to the Chinese market which has the worlds largest middle class today. china had actually long restricted india’s products from the chinese market because indian products were much more cheaper than chinese products and by signing the RCEP china wont be able to restrict indian products anymore. but instead we chose to walk away from such a grand opportunity. after 1991 india,s exports went from 10-20 billion to the current 350 billion dollars that it is today and by only allowing cheap imports can companies get the time to set up there industries in a market in the first place. Plus the world’s largest exporters in the world are also the world’s largest importers. everyone talks about china having a exports of 3 trillion $ but dont look at the fact that china’s imports stand at 2.5 trillion$ which will only increase. so the day we come out of the crony capitalist propoganda propelled by this government we can get our economy growing again. how can u become a global superpower if u cant manufacture for the world.

Shekhar chacha I am more than happy to contribute but only for you,Alex philip, and mr. d n singh. I don't want my money to be spend on the print , web portal.

Serious upsc aspirants knew the answer after hearing 1st two sentences 😂😂😂😂 - this year's Economic survey Former Foreign Secretary Shyam saran sir is of the same opinion what you have hinted shekhar sir But Although neo-liberalism is good for national GDP but no one can deny that it has created huge income inequality across the globe

2 cents: Reality - > Lack of infrastructure/Red tape + corruption/Risk taking mindset for innovation. India simply cannot manufacture for self, forget exports.

It's a Universal Truth. You cannot run away from the Competition because it will never end. Competition is what Differentiates Hard Working and Talented People from Lazy and Irresponsible People. Unless Competition snatches your Happiness, it is a good thing.

Hi SG, great analysis. One question:- Why is the government then going back? What is in their mind ?

This is my own quote- Optimism is good but prudence is more important. While we may feel enthusiastic and optimistic about India will do better economically but past statistics shows us we aren't competent enough, forget about China even small countries like S.korea, Vietnam is doing better than us. Not joining RCEP is a Prudent decision.

It's the evening time and the Santa clause arrives

Hi Shekhar, at the outset let me tell I’ve thoroughly enjoyed your analysis/journalism/walking the talk/ etc. over the years. You’ve always come across as a candid journalist and that in a cluttered wannabe world is quite admirable. What’s always caught my fancy is that you understand the upwardly mobile Indian Middle Class (maybe because you were a part of it and hence understand the psyche of all those dreamy eyed middle classers who want(Ed) to achieve something) and don’t frown upon ambition. Else most journalists act holier than thou and give philosophical Gyan even when they take pvt jet rides and enjoy 5 star luxuries! I finally paid & subscribed to The Print today. I usually am prompt with these things but was unwilling to subscribe because you always compared this subscription to a meal or some discretionary spend that I would do. And that Logic was something I neither understood nor liked, because end of the day it’s my choice and why would I pay for something ‘instead’ of something else. But today I was mighty impressed with what you said and fully agreed with it and hence I am made the payment for a monthly subscription. Pls don’t misunderstand my intent, not trying to prove anything but just saying that in a capitalistic world one shouldn’t worry about socialistic concepts like substitution. Especially when you have a damn good product like The Print!

SG....want to know how much have we lost in manufacturing because of open trade policy since 1991. I think we should make more progress on reducing our red tapes before we throw open ourselves to the world.

There's no point in trading with the dragon. They are only interested in buying mining or agricultural commodities but no industrial products from anyone. If you have some product to sell in their market that's technically superior then it will be copied. No point just keep the trade with them to as low as possible

First off all Please stop comparing manufacturing and services sector. 1991 did hurt local manufacturing !

Truth brought out powerfully and with coherence. Yes Shekharji, your commitment to truth, facts, unencumbered by any political ideology, is, in my opinion, the raison d'etre for the vast following here. Thank you. Best wishes!

bombay dyeing is listed at NSE. part of Wadia group

Man who rediscover the joy of preparation Current affairs for UPSC..❤️.hates off sekargupta sir..!!!

Guptaji Please can you make CTC about relation between pseudo-liberal and secular with rightwing Islam(anti Liberal ideology). Especially non-political like in media or entertainment (self proclaimed intellectuals). Across western world US ,west and north Europe, INDIA(only non western country). Thanks if you can make it.

You rightly pointed out ..creative destruction is integral to a progressive economy. Most of the companies in the past were owned by a limited no. of industrialists and their families. Many of them survived under govt. policy protection and had no incentive to modernise and use technological advances to improve productivity and quality. While destruction is a frightful word ...creative destruction implies enterpreneurship is on the rise, however the management skills and dynamism required for continuous transformation to leverage technological and market changes are still wanting in order for companies to survive over the long haul.

India bans more Chinese apps include Ali Express. Plz make video analysis on this and are these moves enough to impose cost on China.

Shekhar Sir, most of the literature in economics favours free trade but with respect to India, protectionism is required on SMSE (Small and Middle Scale Enterprises) . All your examples are of large scale companies and banking sectors but most vulnerable ones are the small businesses which are back bone of a thriving economy ( citing example of West Germany - all their protected SMSEs post WW2 are now multinationals). Chinese dumping of low value, bulk goods (e.g. plastic items) is gradually killing our small scale companies which currently have their market only within India. These needs to be protected in my view.

Sir will you talk about political situation in tamil nadu once pls

The fact that Bajaj did better in finance sector than automobiles which they were doing for years tells you the appalling condition of our manufacturing sir . First make a Ranji trophy competition , before you select the players for Australia's tour of India .

BJP shouldn't be called the "right". They are religious conservatives, and socialist in economics

Another point. I have been watching Shekar Gupta's episodes for a while. Very well balanced views and very patient and a thorough explanations. Kudos Shekarji for a fantastic job.

RCEP ko discuss krna chahiye thaa na. Everyone agrees with standard globalization free trade agreements

You can carry on your work without bothering about the left or right. Congratulations to 'the print' for NOT making it to the list of media houses of Mr. Prashant Bhushan's liking. It already qualifies you as an unbiased organization.

When I was young we had two shops in our neighborhood both had std isd booths, one of them expanded to provide xerox copies , scanning, internet cafe and mobile sim service. The other shop is taken over by a vegetable store. Moral - life is about evolution and adapting to changing circumstances. As the saying goes put your balls on the line.

SG Sir.. you are the only one who can be trusted in all RU-vidrs.. because you only very honestly tell the bitter truths👍.. lots of love and respect for Sir🙏..

Coupta ji is on chinese payroll. He didn't talk about destruction caused by dumping done by CCP owned Chinese companies

You might be a journalist but for me you are one of my best teacher..!

Opening up without universal labour laws has caused Indian manufacturing to die, I know you get a lot of money from CCP

Hi Sir, I cannot pay 500 INR per month right now. But I'm paying 100 INR every month through direct bank transfer. I will pay 200 INR from next month. ThePrint is turning out to be a synonym for high-quality journalism. Good going SG sir. Will keep supporting you :)

From my narrow point of view this deal will benefit u if u have -a large base in terms of pop - a large and developed indigenous industry which can battle competition India does not qualify on the second point , so this deal RCEP will make us the dumping ground of cheap and incompetent Chinese goods , killing our medium sized industry.

Dr Swamy explained better why we should not join RCEP, 1.due product list 2.terms and conditions 3.people exchange not allowed

Can we have CTC with cross collaboration? Would be nice touch to get other people on the screen as well!

I am reminded of “What is TRUTH?” Pontius Pilate’s question still remains an enigma and no answer. Does it apply to honest journalism too?