This paper by NCAER project team led by Dr Rajesh Chadha, Senior Research Counsellor, been produced under the International Centre for Trade and Sustainable Development (ICTSD) Programme on Competitiveness and Development. The objective of this study is to analyse the likely impacts of the trade preference scheme on India and the AFLDCs. The study is premised on the view that an enhanced engagement of India with AFLDCs will allow India to deepen South-South trade cooperation.