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Based on demographic trends, more than 150 million people in the region are expected to enter the labor market by 2030, says International Monetary Fund (IMF).
The IMF paper titled “Is South Asia Ready for take Off? A sustainable and inclusive growth agenda,” 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.
Today, South Asia accounts for one-fifth of the world’s population and, thanks to India’s increasing performance, contributes to over 15 percent of global growth, the report said.
India has overtaken China as the fastest growing large economy and South Asia’s contribution to global growth is set to increase, while more mature economies decelerate, it said.
It also said that greater economic diversification, with an expansion of the service sector, improvements in education, and a still sizable demographic dividend are among the key elements underpinning this performance.
Based on demographic trends, more than 150 million people in the region are expected to enter the labor market by 2030, it added.
It further said that the young and large workforce can be South Asia’s strength, if supported by a successful high-quality and job-rich growth strategy.
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