Will South Asia become the next global factory?
South Asia’s potential is unquestionable: education levels are on the rise, more than one million young workers enter the labor market each month, and the population of the region’s mega agglomerations and sprawling cities is expanding at roughly the same pace. By 2030 more than a quarter of the world’s working adults will live in South Asia. As the work force ages and labor costs rise in China and other East Asian countries, many eyes turn to South Asia.
According to the new report, South Asia’s Turn: Policies to Boost Competitiveness and Create the Next Export Powerhouse, to realize the region’s potential, countries in South Asia should increase regional and global integration, take advantage of agglomeration economies, strengthen firm capabilities, and improve the business environment. The success of the region’s leading firms demonstrate South Asia’s great competitiveness potential.