The month of August has been a month of relief for many South Asian economies. This removed some of the uncertainty around the tariff issue, and we saw markets in these countries react positively. Compared to their Southeast Asian counterparts, who remain strong competitors in exports such as garments, these deals seem fairly competitive, too.
Sri Lanka, Bangladesh, and Pakistan, were able to secure tariff deals of 19–20% for goods exported to the US. However, India was not able to secure deal in July and ended up having to pay a 50% tariff by late August.
Looking beyond global trade, South Asian economies have been faring quite well domestically with Pakistan and Sri Lanka recording a considerable current account surplus. Bangladesh has also managed to build up its foreign reserves and stabilize its economy to some extent. However, Maldives continued its debt distress and has been working on building strategic ties with its neighbours including India and Sri Lanka.
It will be interesting to see whether this momentum and trajectory continue for these economies heading into 2026.
The full report covers further details, including:
1. Top 3 things you should know about the regional countries.
2. Summary of key economic indicators for the month.
3. Key news articles in detail,
Clients with access to Frontier Athena can view the full report at athena.frontiergroup.info. For limited-time access, please contact us at research@frontier.info