ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
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A Sectoral Impact Analysis of the ASEAN-India Free Trade Agreement

Under the asean-India Free Trade Agreement, the trade bloc's members will have increased access to the Indian market for semi-processed and processed agricultural products and close substitutes, which could adversely affect the country's agricultural sector. Indian small and medium enterprises in food and other agriculture-related products, some intermediate goods, and light manufacturing products are also likely to suffer. But import liberalisation in intermediate goods will encourage multinational corporations to undertake production rationalisation across the region in the transport equipment, machinery, chemicals and iron and steel sectors. This could lead to India's deeper integration in production networks in such sectors. All this, combined with the neglect of the development needs of domestic agriculture and a manufacturing base for the expected gains in service sector liberalisation with asean, is likely to make India's employment and livelihood issues even more challenging.

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