The possibility of developing regional production networks in specific sectors between nations of South Asia has been explored in this paper. The case of the leather and leather goods cluster in Tamil Nadu in south India has been taken up to reflect upon range of issues that confront such initiatives. It is expected that firms participating in the regional production networks would benefit from shared technology, institutional support and wider market access. While the important dimensions appear to be domestic policy interventions to ensure adequate and timely loan finance, promoting economic infrastructure, and other business development services, exploring the nature and direction of collaboration among clusters between nations and other stakeholders including institutions of the state requires closer attention. However, the significant presence of informality in the production and labour processes requires to be addressed as a core concern of developing regional production networks in South Asia.