<p>Indian farmers and businesses on Tuesday hailed Prime Minister Narendra Modi's decision to opt out of a sprawling Asian trade pact, with the country's largest dairy producer Amul thanking the premier for "supporting livelihoods".</p>.<p>New Delhi's 11th-hour rejection of the Regional Comprehensive Economic Partnership (RCEP) -- which was meant to account for 30 percent of global GDP and loop in half the world's population -- comes as India battles slowing manufacturing and consumption.</p>.<p>The pact would have increased India's access to other Asian markets, but New Delhi feared its domestic industries would be hit hard if the country was flooded with cheap Made-in-China goods, particularly in key employment sectors such as agriculture and textiles.</p>.<p>In a tweet late Monday, Amul applauded Modi's "exemplary leadership and support" to dairy farmers, who would have been exposed to more competition under the RCEP.</p>.<p>"Your vision of supporting their livelihood will help to double their incomes and make India stronger," it said.</p>.<p>Praveen Khandelwal, secretary-general of the leading lobby group, Confederation of All India Traders (CAIT), released a statement to AFP warning the deal would have allowed Chinese manufacturers to overwhelm "the Indian market with Made In China products at very low prices... thereby creating a disequilibrium".</p>.<p>B. M. Singh, convenor of the All India Kisan Sangharsh Coordination Committee, said the rejection of the deal was "a huge victory for farmers".</p>.<p>"We should not go for an open agreement like the RCEP simply because we can't compete with other big countries," Singh told AFP.</p>.<p>"It's like throwing someone who is 25 kilogrammes (55 pounds) into a boxing ring and asking him to compete with an opponent weighing 100 kilogrammes."</p>.<p>But experts cautioned that New Delhi, which has a long history of protectionism, may lose out as it tries to become a more globally competitive economy.</p>.<p>"In an era in which manufacturing requires the ability to become more -- not less -- integrated into global supply chains, this decision appears for the moment to make it harder to boost manufacturing in India," the Council on Foreign Relations senior fellow Alyssa Ayres wrote.</p>.<p>"The central issue for the Indian government isn't in the wording of a trade deal, but in the competitiveness of the Indian economy," Ayres added in a blog post underlining the need for New Delhi to undertake further reforms to kickstart growth.</p>.<p>India's decision is nevertheless seen as a blow to the deal, which now includes all 10 Association of Southeast Asian Nations states plus China, Japan, South Korea, Australia, and New Zealand -- but not the United States.</p>.<p>The remaining members are aiming to sign it next year after reviewing an agreed draft text.</p>
<p>Indian farmers and businesses on Tuesday hailed Prime Minister Narendra Modi's decision to opt out of a sprawling Asian trade pact, with the country's largest dairy producer Amul thanking the premier for "supporting livelihoods".</p>.<p>New Delhi's 11th-hour rejection of the Regional Comprehensive Economic Partnership (RCEP) -- which was meant to account for 30 percent of global GDP and loop in half the world's population -- comes as India battles slowing manufacturing and consumption.</p>.<p>The pact would have increased India's access to other Asian markets, but New Delhi feared its domestic industries would be hit hard if the country was flooded with cheap Made-in-China goods, particularly in key employment sectors such as agriculture and textiles.</p>.<p>In a tweet late Monday, Amul applauded Modi's "exemplary leadership and support" to dairy farmers, who would have been exposed to more competition under the RCEP.</p>.<p>"Your vision of supporting their livelihood will help to double their incomes and make India stronger," it said.</p>.<p>Praveen Khandelwal, secretary-general of the leading lobby group, Confederation of All India Traders (CAIT), released a statement to AFP warning the deal would have allowed Chinese manufacturers to overwhelm "the Indian market with Made In China products at very low prices... thereby creating a disequilibrium".</p>.<p>B. M. Singh, convenor of the All India Kisan Sangharsh Coordination Committee, said the rejection of the deal was "a huge victory for farmers".</p>.<p>"We should not go for an open agreement like the RCEP simply because we can't compete with other big countries," Singh told AFP.</p>.<p>"It's like throwing someone who is 25 kilogrammes (55 pounds) into a boxing ring and asking him to compete with an opponent weighing 100 kilogrammes."</p>.<p>But experts cautioned that New Delhi, which has a long history of protectionism, may lose out as it tries to become a more globally competitive economy.</p>.<p>"In an era in which manufacturing requires the ability to become more -- not less -- integrated into global supply chains, this decision appears for the moment to make it harder to boost manufacturing in India," the Council on Foreign Relations senior fellow Alyssa Ayres wrote.</p>.<p>"The central issue for the Indian government isn't in the wording of a trade deal, but in the competitiveness of the Indian economy," Ayres added in a blog post underlining the need for New Delhi to undertake further reforms to kickstart growth.</p>.<p>India's decision is nevertheless seen as a blow to the deal, which now includes all 10 Association of Southeast Asian Nations states plus China, Japan, South Korea, Australia, and New Zealand -- but not the United States.</p>.<p>The remaining members are aiming to sign it next year after reviewing an agreed draft text.</p>