ABSTRACT
Authukorala has identified wage differentiation and lowering of trade transaction cost in Southeast Asia as major catalysts in enhancing and expansion of the network to Association of Southeast Asian Nations (ASEAN) including countries like Vietnam and Indonesia. This chapter describes India’s integration process especially in three sectors viz. machinery, electrical and optical products and automobiles including parts and accessories. Special attention on these sectors stem not only from the fact that they are among key trading sectors between India and ASEAN, but these are few important sectors among others where international production networks (IPN) building process as a result of Free Trade Agreement carries emphatic impact for SME’s. The chapter discusses the conceptual framework of global value chain and international production network. It presents Indian policies and achievements in engaging SMEs in IPN. The chapter examines participation of Asian countries in international value chain. It explains the analysis of value chain in selected industries among ASEAN and India.
