South Asian region contributes 15% to global growth, led by India and Bangladesh

New Delhi: Reserve Bank of India's Governor Shaktikanta Das on Friday said the South Asian region contributes 15 per cent to global growth, led by India and Bangladesh.

The Governor was speaking at a conference, organised by the International Monetary Fund (IMF), on Friday. He was talking along the lines of the South Asian region's macroeconomic challenges and policy priorities. The governor also said, "The priority for South Asian region, including India, is taming inflation; risks to growth, investments may rise if inflation remains high." He said during his speech, "Overall, the South Asian region has an outsized influence on the progress of civilisation and trade in the world."

"Currently, the region accounts for about 25 per cent of the world's population," he said.
With a median age of 27 years, the Governor said, "It is one of the youngest regions in the world. Consequently, per capita income levels have risen alongside notable progress key developments parameters."

As per the estimates of the IMF, the governor said the South Asian region contributed 15 per cent to global growth, led by India and Bangladesh.
"The region also receives one-fifth of the total remittance flows in the world, the governor said, adding that the South Asian region had grown, responding to the formidable forces of the world in the past."

The Governor said, "Following the food crisis in 1960s, the South Asian region successfully implemented the green revolution. This brought a huge part of the self-sufficiency in many parts of the region and the early dependence on imports from other regions was considerably reduced."

"After the oil shocks in 1970s, immigration from South Asia to West Asia became one of the largest market-driven labour flows. This led to the highest remittances of increased inflows into the region," the central bank's governor said.

According to IMF, the conference, which coincided with the book launch, will provide an opportunity to discuss how South Asia can build on its development success in the aftermath of the Covid-19 pandemic and geopolitical tensions to achieve its potential.

The conference focused on areas that are viewed as key to sustaining high-quality growth over the medium term. The conference brought together high-level participants from the South Asia region.