Emerging Production Networks
Reduced tariffs on manufactured goods under the ASEAN-India FTA have opened up a new opportunity for the expansion of the ASEAN production network to India and vice versa. FDI from Singapore, Malaysia and Indonesia has shown a positive trend in the last few years. India’s investment in ASEAN has also gone up. India’s import of machinery products from ASEAN grew up substantially. Auto components, telecom equipments, automatic data processing equipments, mechanical and electrical apparatus are the main items imported by India from Southeast Asia.