ABSTRACT
This chapter attempts to analyse the bilateral trade growth between India and Association of Southeast Asian Nations (ASEAN) along with trade with rest of the world in light of international production network (IPN) and trade in value-added literature. Both global value chain (GVC) and IPN have become important features in modern international trade. Because of the emergence of IPN as a concept, many original equipment manufacturers (OEM) are reducing their vertical linkage by shredding off completely or some part of the operations. Due to significant developments in technology, production process is fragmented and parts and components can easily be produced in distant places. This is accentuated due to rapid development in communication technology and a big boost in the transport sector. The two-way trade in components is high in some sectors such as automotive, electronics and ICT products and so on. Free trade agreements (FTA) must be coupled with other development agendas such as physical connectivity and other infrastructure.
