Trade and Investment Barriers Affecting International Production Networks in India

July 1, 2014

This paper analyses the reasons behind India lagging behind East and South East Asian economies in participating in international production networks, on which growth in manufacturing has become increasingly dependent in the contemporary world. It examines in particular the role played by logistics infrastructure and processes in the selection by investors of particular locations for investment in manufacturing. The paper also lists out other shortcomings in the domestic investment environment that have made India less attractive for foreign as well as domestic investors in comparison with East and South East Asian countries.