South Asia is in a unique position within the global economy today.

The region has been growing much faster than both developed and other developing economies. If we look at economic indicators like GDP growth, South Asia has been averaging around 7%. While some corrections are expected, and this year’s growth might settle around 6-6.5%, it’s still a very positive trajectory. However, this rapid growth comes with environmental challenges. South Asia is home to nine of the world’s ten most polluted cities. The pressing question is how to reconcile economic growth with environmental sustainability. Just five years ago, concerns about local air pollution were largely concentrated in northern India. But now, these issues are prevalent across the west and south as well. Rapid urbanization and growing populations are straining infrastructure and exacerbating pollution levels. Addressing these challenges requires not only adopting renewable energy technologies but also expanding their use across sectors like electricity, mobility, and industry.

How are South Asian countries bracing for impact from potential US tariffs and new trade dynamics?

Trade restrictions are already impacting energy costs for consumers, with recent tenders showing rising prices. India, like other nations, is feeling the pinch. Inflation, trade restrictions, and currency depreciation are compounding the issue, making it difficult for the country to sustain 7% GDP growth this year.

Could we see India’s energy imports decline in 2025?

That’s the objective. India is ramping up domestic coal production to reduce imports. While oil remains a necessity that must be imported, renewable energy provides a domestic alternative. However, the supply chains for renewables often rely on imports, replacing one dependency with another. No country can fully rely on domestic resources. India has been securing more energy supplies through short-term contracts, partly to avoid locking in investments while prices remain so volatile. However, relying on short-term contracts carries risks. Geopolitical tensions could exacerbate supply shocks and price volatility. India needs to insulate itself from these risks through a more robust long-term strategy.