If you have been paying attention to developments in global trade, you would already know that the contours of what is poised to become the world’s largest trading bloc is taking shape. India and 15 other nations in Asia and Asia-Pacific regions have been working to sew up contentious remaining areas, forge an agreement and put in place a deal by the end of 2019.The proposed Regional Comprehensive Economic Partnership (RCEP) is gigantic in size and scope. It aims to create a free trade zone of 10 Asean nations and Australia, China, India, Japan, South Korea and New Zealand. This means a zero-customs duty zone in a geography that contributes 34% of global gross domestic product (GDP) and 40% of world trade. The region is also home to almost half of the world’s population.Naturally, the grouping will have immense economic clout. A sense of exuberance was visible among the members of the proposed group in mid-November at Singapore, which had hosted the summit level talk of the RCEP nations. Prime Minister Narendra Modi , who participated in the event, said he was committed to early conclusion of the agreement.But in December, the Government of India engaged three consultants — Indian Council for Research on International Economic Relations; New Delhi-based Centre for Regional Trade, and an expert in international trade, Rupa Chanda, also a professor at IIM-Bangalore — to independently take stock of the partnership’s “real gains and losses” to India in the long term.The move has raised a question. Why did India feel the need to get independent assessments done now — more than five years after negotiations involving 24 rounds of talks at the expert level and 13 ministerial meetings? In fact, seven of the 16 chapters of the RCEP have already been finalised, including economic and technical cooperation, customs procedures and trade facilitation, and government procurement.It is a smart move by the government, say trade negotiators. It reassures India Inc their apprehensions would be taken into account during the upcoming discussions on three crucial unfinished chapters — on trade, services and investments. The next meeting is due in Thailand next month. The reports of the consultants are expected to be submitted by the end of January.One of the three consultants — the Centre for Regional Trade, a commerce ministry-funded autonomous body — is meeting industry representatives across India to understand why they are upset over the impending trade deal. One such consultative meeting took place in Lucknow on December 26.If the Indian officials participating in the negotiations are to be believed, the pact may cover 80 to 90% of tariff lines in 20 years, with an exclusive category of select goods for which customs duties won’t be zero even after two decades. This should come as a relief to some manufacturers, as customs duties ensure their market is protected from the onslaught of cheap imports.“RCEP is nothing but a bilateral trade pact with China. India will lose, China will gain,” says Vinod Sharma, MD of Deki Electronics, which imports raw material from China. “Once the pact is enforced, India will give more market access to China and our trade deficit will increase further."India's trade deficit has given sleepless nights to many. In 2017-18, India exported goods worth $13.1 billion to China and imported goods worth $73.3 billion -creating a trade deficit of $63.1 billion. India has trade deficits with other RCEP nations, too, such as South Korea ($11.9 billion) and Australia ($10.2 billion).But China's trade muscle gives India Inc the jitters. Beijing has manipulated laws to give subsidies to its domestic manufacturers, despite being a member of the World Trade Organization for 18 years, say Indian manufacturers. The global trade body has a strict anti subsidy stance.RCEP will, India Inc representatives say, remove customs duty on about 80-85% of items. "The result will be that Chinese goods will flood the Indian market even more," adds Sharma, who also heads an electronics export promotion panel in the Confederation of Indian Industry.Diary cooperative Amul and Jindal Stainless, among others, have expressed reservations about the deal. RCEP will also impact India's revenue collection.Assuming that India and China agree to eliminate customs duties on 85% of bilateral trade, Chinese goods imports worth $62.3 billion (85% of $73.3 billion) will become duty free. This will lead to an estimated loss of $6.2 billion to the exchequer, going by the fact that India's average customs duty is 10%, assuming that the concessions are given at one go. The goods, however, will become duty-free over 20 years.Despite these arguments, former commerce secretary Rajeev Kher says RCEP will offer India an opportunity to engage with China.It will give New Delhi a chance to stall some of its unfair practices such as doling out subsidies unethically and stalling Indian pharmaceutical products, among others, on the pretext of quality control. "India can't stand alone. It has to be a part of the group", says Kher, who retired in June 2015.RCEP could be a turning point in heralding major trade-related reforms unheard of since the days of liberalisation in 1991, he adds. Experts say RCEP will give Indian exporters a window to be a part of global value chains."Indian industry has no option but to rise to the competition. After RCEP, the nature of Indian businesses will change from family run ones to more of joint ventures," says an RCEP negotiator on condition of anonymity.There is no denying the fact that India's entry into such a giant club of economies will strengthen its strategic muscle.But, as Kher says, this is a chance to bring in historic trade reforms, which in itself will cement India's position as a major global economy. Will the signing of the RCEP sound the death knell for many in India Inc? There will be clear answers only after the deal takes a more definite shape. Before that happens, India will have to get through a few hard bouts of negotiations.