In South Asia economic dynamics largely define the present understanding, both within and without the region, of which focuses are on agriculture, a developing industrial sector and services. Despite a largely debatable replacement of currency, and rethinking and materialization of GST, India accounts for more than three-quarters of the South Asian regional economic output. Reports from US Census Bureau IDB point towards the young demographics of India, where projections for next three decades are more promising than China. A lower median age workforce acts more like a propeller towards economic development cutting on government expenditure for social security and healthcare costs of an ageing population. A rising middle-class population and improved governance in most of the South Asian nations are some of the positive elements. India’s increasing role to blend into the global economy, making space among G-20 nations and BRICS, are positive signs of her upkeep in the global economic race. Following natural calamities in India, Pakistan and Bangladesh over the past three years, large sections of the population were adversely affected. Diplomatic disruptions within the region and tensions between India-Pakistan, India-Nepal had lasting effects in matters of bilateral trade within the region. However, forging of deeper regional integration and free-trade can be beneficial for consumers, along international borders within the region.
With the growing importance of the Indian Ocean Region, the importance of South Asian coastal nations have found greater significance over the decades. With an enormous share of the Middle-Eastern Oil trade passing through these waters, safe and efficient commercial shipping requires not only closer diplomatic cooperation but also a competent infrastructure. The drive for access to port, has on the one hand built better cooperation between Nepal-India-Bhutan and on the other brought Bangladesh, Sri Lanka and Pakistan under the Chinese investment scheme. This is projected to benefit interests at the national level for development of infrastructure, where well- planned and well-executed partnerships are projected to generate millions of jobs.