How Far Has India Integrated with East Asian Economies? Evidence from International Trade Data

Abstract:Since the 1990s, East Asia—including Northeast and Southeast Asia—has led the world in adopting a task-by-task international division of labour or international production networks (IPNs), the core of which consists of machinery industries. In this regard, how far has India integrated with East Asia? Using international trade data for comparison from multiple perspectives, this article gives an overview of the current position of India with respect to machinery IPNs and information and communication technology (ICT) services. The article shows that India has not yet participated in machinery IPNs in the East Asian region. We argue that ICT services are a source of strength for the Indian economy, and its competitiveness could be utilized effectively by combining new technologies with traditional industries such as manufacturing. India still has huge untapped opportunities for utilizing the mechanics of a new international division of labour to accelerate economic growth, innovation and poverty alleviation. And economic integration with East Asia could work as a trigger to redirect India's industrialization strategies.