India-ASEAN Free Trade Agreement: The Untapped Potential

India has signed a FTA with the ASEAN. The ‘Look East’ policy for India matches very well with the ‘Look West’ policy that ASEAN have for India. However, in its present state, India-ASEAN FTA promises limited gain. There is a need to go beyond trade in goods, and cover areas in services. We find evidence of complementarities in trading relation. A reason for ASEAN economic community progressing well has to do with the complementarities. Complementarities exist in terms of trade in energy, consumer durables and food items. For India to gain meaningfully there is a need to become part of East Asian production network. Participating in East Asian production network has become a necessary condition if India wants to target a higher growth trajectory