South Asia and the World: Rapid Increase of South Asia as an Economic Power

Running head: SOUTH ASIA AND THE WORLD
SOUTH ASIA AND THE WORLD
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SOUTH ASIA AND THE WORLD
The South Asian region differs in many ways from the Western and European countries
as it has remarkable cultural and linguistic variety. On the economic front, although Europe and
other North America nations hold the power, South Asia has shown remarkable growth in the
past few decades. Previously, South Asia had the image of being the least incorporated part of
the world. Further, the failure of organizations like the South Asian Association for Regional
Cooperation (SAARC) also added to this perception (Asiafoundation.org, 2018). The thesis for
this paper is the elaboration of the rapid increase of South Asia as an economic power despite the
fact that it faces problems of population and poverty.
To understand the present situation of South Asia to other regions of the world, it is
important to focus on some important historical events that enabled South Asia to compete on
the global platform. The South Asian region has been rattled by year-long communism and
colonialism in the early 19th and 20th century (Girling, 2013). While China suffered from the
onslaught of the worst ever famine brought upon by Mao Zedong during the late 1950s and early
1960s, India suffered from the British colonialism. Both nations managed to break away from
these early sufferings. Although China has made much more advancements than India, it is not
wrong to state that India too is making slow but sure progress. After gaining independence in the
year 1947, the country made progress in areas of economic, political and military. It emerged as
one of the most rapidly developing nations within the Indian subcontinent.
The Indian Subcontinent within the South Asian region has had a turbulent past with
almost 200 years of the British colonialism preceded by the reign of the Mughals. The
repercussions of these long years of subjugation and slavery were visible in the deteriorating
economic condition. The drain of wealth by the British caused much destruction to the economy
and dragged the subcontinent several years behind. Prior to independence, India had no identity

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SOUTH ASIA AND THE WORLD
of its own and it was cut from the rest of the world. The only interests it represented were that of
the colonial superiors. However, the country gradually began to stand on its own and have its
own identity on both economic and political front after 1947.
During the 1990s, several significant events led to the recognition of India as a growing
economy. One of the most important was globalization and liberalization. India opened its gates
for the foreign investors to invest in its market. It led to a new era of economic development
within the Indian subcontinent. Discussion on globalization and its impact on the local lives of
subcontinent people shall be discussed in the later sections. It is but important to note that while
on one hand, forces of globalization and liberalization were transforming the economic picture of
the subcontinent, on the other, communal riots and political power shifts hampered the progress.
The assassination of Rajiv Gandhi, the then Prime Minister of India in 1991 followed by the
Bombay (now Mumbai) riots and bomb blasts in 1992 and 1993 respectively had devastating
effects on the country (Jaffrelot, 2014). The economy slumped as properties worth millions were
destroyed in these events. The events had an impact on the relations between India and Pakistan,
the two crucial members of South Asia, as it was revealed that the perpetrators of the 1993 bomb
blasts were operating from Pakistan.
Gradually, the country managed to overcome these disasters and make a mark on the
global economy. Bengaluru (previously Bangalore) had a key role to play in reviving India’s
economy. Known as the IT hub of the country, the city underwent a transformation around the
same time when other prominent cities were facing riots and bomb blasts. It witnessed a creation
of “‘new economy’ jobs under the aegis of large-scale urban reforms” (Mukherjee, 2010). It
opened the door for foreign investors to invest in the growing IT industry. India slowly began to
be recognized on the global front and its economy started to show signs of recovery. Bengaluru