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South Asia's Growth Outlook: Steady, but Increasingly India-Dependent

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South Asia continues to be one of the fastest-growing regions in the world, though its pace is beginning to slow. According to the Asian Development Bank, regional growth will drop from 6.8% in 2025 to 6.3% in 2026, then rebound to 6.8% in 2027.

But these numbers largely reflect one country's performance: exclude India, and growth across the rest of the region falls to just 4.1%, putting it in line with other emerging markets. This is less a South Asian growth story than an Indian one.

India continues to carry the region, with the ADB projecting 6.9% growth for FY2026, driven by robust domestic demand, loosening financing conditions, and reduced US tariffs on Indian exports. Elsewhere, the picture is uneven.

Bangladesh and Sri Lanka are climbing out of earlier economic crises, Pakistan is attracting renewed investment after last year's credit rating upgrades, while Nepal's trajectory has been disrupted by social unrest.

Several factors will shape what comes next. Because the region depends heavily on imported energy, it remains vulnerable to swings in global prices and inflation is projected to jump from under 3% to roughly 5% in 2026 as food and fuel costs rise. Compounding this, remittances from the Gulf are expected to weaken, posing particular risk to Bangladesh and Nepal. Taken together, the outlook is encouraging, but the path forward is unlikely to be smooth.

The current edition of CEOInsights Asia magazine highlights inspiring leaders from the Indian subcontinent.

One of the featured leaders is Roshan Soti the Chief Executive Officer of Nepal Hydro Electric Limited, with nearly three decades of experience in hydro-mechanical and electro-mechanical engineering.

Having joined the company in 2000 as a Mechanical Engineer, he has risen through the ranks to lead the organisation, driving technical excellence, innovation, and sustainable hydropower development in Nepal.

From India, we have Rushad Ginwala, a hospitality entrepreneur and the Founder of Mirch Masala, one of India's most recognized dhaba-themed restaurant brands. A graduate of Bombay Catering College, he began his career with the Taj Group before launching Mirch Masala nearly three decades ago, blending authentic Indian cuisine with immersive cultural experiences.

Through in-depth conversations we get a glimpse of their leadership journeys, success mantras and more.

Read on and let us know your thoughts.

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