India is emerging as the key engine driving South Asia’s economic momentum, positioning the region as the fastest-growing among global emerging markets, according to a survey of chief economists conducted by the World Economic Forum (WEF). Despite persistent global uncertainty, South Asia stands out for its strong growth outlook, largely anchored by India’s economic performance.

Optimism Amid Global Uncertainty

The WEF’s Chief Economists Outlook, released ahead of the annual Davos meeting, highlights a mixed global picture. Nearly half of the economists surveyed expect global economic conditions to weaken in the coming year. However, sentiment toward South Asia has turned increasingly positive, with a significant number of respondents projecting strong to very strong growth for the region—a notable improvement compared with earlier surveys.

This renewed confidence is closely linked to India’s steady growth trajectory and ongoing reform initiatives, which continue to underpin regional economic prospects.

India Anchors Regional Growth

According to the survey, India leads South Asia’s outlook due to its economic resilience, supported by structural reforms, rapid digitalisation, and robust domestic demand. High GDP growth and rising investments in advanced technologies, including artificial intelligence, were highlighted as critical drivers that are expected to support sustained economic performance in the years ahead.

Chief economists view India as a stabilising force for the region, helping offset external headwinds such as global trade tensions and shifts in international monetary policy.

Positive Outlook Ahead of 2026

With external uncertainties still weighing on the global economy, India’s continued growth is expected to sustain optimism across South Asia. The survey suggests that the region could strengthen its position in global growth forecasts heading into 2026, with India playing a central role in shaping its economic trajectory.

Summary:
A World Economic Forum survey of chief economists identifies India as the primary driver of South Asia’s growth, making the region the brightest growth spot among emerging markets. Supported by strong GDP growth, structural reforms, digital adoption, and rising investment in advanced technologies, India is anchoring regional resilience despite global economic uncertainty.

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