Led by India, South Asia moving towards becoming center of global growth: IMF

A latest research by the International Monetary Fund has said that South Asia, led by India, is moving towards becoming center of global growth and could contribute about one-third of the world’s growth by 2040.

Notably, under the IMF’s geographical division of the world, South Asia does not include Afghanistan and Pakistan. For IMF, South Asia includes India, Bangladesh, Nepal, Sri Lanka, Bhutan and Maldives.

The IMF paper titled ‘Is South Asia Ready for take Off? A sustainable and inclusive growth agenda,’ will be released in New Delhi tomorrow.

The report said that under a substantial liberalisation scenario, supported by stepped-up efforts to improve infrastructure and successfully harness South Asia’s young and large workforce, the region could contribute about one-third of global growth by 2040.

Anne-Marie Gulde-Wolf, Deputy Director, Asia and Pacific Department, IMF, noted that based on demographic trends, more than 150 million people in the region are expected to enter the labour market by 2030.