South Asia's economic growth slows to 6.3% in 2026, with industrial policy offering a path to job creation

South Asia's economic growth is projected to slow to 6.3% in 2026 due to global energy market disruptions. The region's growth, though slowing, remains faster than other developing economies, driven by India's domestic demand and trade agreements. Vulnerabilities include energy price volatility and climate shocks. The World Bank report analyzes industrial policy, noting mixed results in South Asia and recommending targeted measures alongside broad reforms for job creation.