“While the recovery will be led by India, which accounts for about 70 per cent of regional output, other economies such as Bangladesh and Iran are also projected to see stronger growth in the forecast period,” the report said.

The about six per cent growth projected for India in 2016 will be the highest since the 2008-2011 period when it had grown at about 7.3 per cent.

Economic growth had slowed to 4.7 per cent in 2012, according to the UN report.

During 2014, East Asia, including China, managed to register relatively robust growth, while India led South Asia to a moderate strengthening.

Developing countries as a group are expected to grow at 4.8 per cent in 2015 and 5.1 per cent in 2016, up from the 4.3 per cent estimated for 2014.

The report added that along with robust external demand, growth is expected to be underpinned by a moderate strengthening of domestic consumption and investment as countries benefit from improved macroeconomic conditions.

“Several countries, notably India, are likely to make progress in implementing economic policy reforms, thus providing support to business and consumer confidence,” it said.

The report, however, warned of significant downside risks for the South Asian region due to the continuing fragility of the global economy and considerable country-specific weaknesses, including political instability and the agricultural dependency on the monsoon.

Average inflation for developing economies will also fall slowly over the outlook period.

While inflation for East Asia will stay around the recent levels of 2-3 per cent over the outlook period, a pronounced decrease is forecast for South Asia due to falling inflation in almost all countries, especially in India and Iran.

Regional average inflation for South Asia is projected to decrease gradually from 14.7 per cent in 2013 to 7.2 per cent in 2016.