Background:
China has proposed for a ‘BRICS FTA’ aimed at boosting trade ties in the grouping through binding commitments on eliminating tariffs.
Current Developments:
- BRICS members barring China are not keen on such a pact.
Why?
Their apprehensions about the plan include the fear that it could lead to a surge in imports of Chinese goods into their territory — in turn, hurting local manufacturing.
Why India is not interested?
- There is already a widening goods trade deficit with China.
- India’s goods trade deficit with China has escalated from $1.1 billion in 2003-04 to $52.7 billion in 2015-16.