The economy of India has transitioned from a mixed planned economy to a mixed middle-income developing social market economy with notable public sector in strategic sectors.^[63] It is the world's fifth-largest economy by nominal GDP and the third-largest by purchasing power parity (PPP); on a per capita income basis, India ranked 139th by GDP (nominal) and 127th by GDP (PPP).^[64] From independence in 1947 until 1991, successive governments followed Soviet model and promoted protectionist economic policies, with extensive Sovietization, state intervention, demand-side economics, natural resources, bureaucrat driven enterprises and economic regulation. This is characterised as dirigism, in the form of the Licence Raj.^[65][66] The end of the Cold War and an acute balance of payments crisis in 1991 led to the adoption of a broad economic liberalisation in India and indicative planning.^[67][68] Since the start of the 21st century, annual average GDP growth has been 6% to 7%.^[63] The economy of the Indian subcontinent was the largest in the world for most of recorded history up until the onset of colonialism in early 19th century.^[69][70][71]

Nearly 70% of India's GDP is driven by domestic consumption;^[72] country remains the world's sixth-largest consumer market.^[73] Apart from private consumption, India's GDP is also fueled by government spending, investments, and exports.^[74] In 2022, India was the world's 6th-largest importer and the 9th-largest exporter.^[75] India has been a member of the World Trade Organization since 1 January 1995.^[76] It ranks 63rd on the Ease of doing business index and 40th on the Global Competitiveness Index.^[77] With 476 million workers, the Indian labour force is the world's second-largest.^[78] India has one of the world's highest number of billionaires and extreme income inequality.^[79][80]

During the 2008 global financial crisis, the economy faced a mild slowdown. India endorsed Keynesian policy and initiated stimulus measures (both fiscal and monetary) to boost growth and generate demand. In subsequent years, economic growth revived.^[81] The period between 2004 and 2014 is referred to as India’s lost decade as India fell behind other BRIC economies.^[82][83]

In 2021–22, the foreign direct investment (FDI) in India was $82 billion. The leading sectors for FDI inflows were the service sector, the computer industry, and the telecom industry.^[84] India has free trade agreements with several nations and blocs, including ASEAN, SAFTA, Mercosur, South Korea, Japan, Australia, UAE, and several others which are in effect or under negotiating stage.^[85][86]

The service sector makes up more than 50% of GDP and remains the fastest growing sector, while the industrial sector and the agricultural sector employs a majority of the labor force.^[87] The Bombay Stock Exchange and National Stock Exchange are some of the world's largest stock exchanges by market capitalisation.^[88] India is the world's sixth-largest manufacturer, representing 2.6% of global manufacturing output.^[89] Nearly 65% of India's population is rural,^[90] and contributes about 50% of India's GDP.^[91] India faces high unemployment, rising income inequality, and a drop in aggregate demand.^[92][93] India's gross domestic savings rate stood at 29.3% of GDP in 2022.^[94] In recent years, independent economists and financial institutions have accused the government of manipulating various economic data, especially GDP growth.^[95][96] India's overall social spending as a share of GDP in 2021–22 will be 8.6%, which is much lower than the average for OECD nations.^[97][98]

The economy of Bangladesh is a major developing market economy.^[99] As the second-largest economy in South Asia,^[100][101] Bangladesh's economy is the 33rd largest in the world in nominal terms, and 25th largest by purchasing power parity. Bangladesh is seen by various financial institutions as one of the Next Eleven. It has been transitioning from being a frontier market into an emerging market. Bangladesh is a member of the South Asian Free Trade Area and the World Trade Organization. In fiscal year 2021–2022, Bangladesh registered a GDP growth rate of 7.2% after the global pandemic.^[102] Bangladesh is one of the fastest growing economies in the world.

Industrialisation in Bangladesh received a strong impetus after the partition of India due to labour reforms and new industries.^[103] Between 1947 and 1971, East Pakistan generated between 70% and 50% of Pakistan's exports.^[104][105] Modern Bangladesh embarked on economic reforms in the late 1970s which promoted free markets and foreign direct investment. By the 1990s, the country had a booming ready-made garments industry. Remittances from the large Bangladeshi diaspora became a vital source of foreign exchange reserves. Agriculture in Bangladesh is supported by government subsidies and ensures self-sufficiency in food production.^[106][107] Bangladesh has pursued export-oriented industrialisation.^[108][109]

Bangladesh experienced robust growth after the pandemic with macroeconomic stability, improvements in infrastructure, a growing digital economy, and growing trade flows.^[110] Tax collection remains very low, with tax revenues accounting for only 7.7% of GDP.^[111] Bangladesh's banking sector has a large amount of non-performing loans or loan defaults, which have caused a lot of concern.^[111][112] The private sector makes up 80% of GDP.^[113][114] The Dhaka Stock Exchange and Chittagong Stock Exchange are the two stock markets of the country.^[115] Most Bangladeshi businesses are privately owned small and medium-sized enterprises (SME) which make up 90% of all businesses.^[116]

The economy of Pakistan is classified as a developing economy. It is the 24th-largest in terms of GDP based on purchasing power parity (PPP) and 46th largest in terms of nominal GDP. As of 2023, the country has a population of 232 million people. According to the International Monetary Fund (IMF), on a per capita income basis, Pakistan ranked 161st by GDP (nominal) and 138th by GDP (PPP).

In the formative decades of Pakistan, the economy was largely based on private industries. Nationalization of significant portion of the sector including financial services, manufacturing and transportation had begun in the early 1970s under Zulfikar Ali Bhutto. With the beginning of Zia-ul Haq's regime in the 1980s, a more "Islamic" economy was adopted which outlawed economic practices forbidden in Sharīʿah and mandated traditional religious practices instead. Although, the economy began to privatise in the 1990s.

The growth poles of Pakistan's economy are situated along the Indus River; the diversified economies of Karachi and major urban centres in Punjab (such as Faisalabad, Lahore, Sialkot, Rawalpindi and Gujranwala), co-existing with lesser developed areas in other parts of the country. Pakistan was classified as a semi-industrial economy for first time in late 1990s albeit an underdeveloped country with heavy dependence on agriculture, textile industry being dependent on cotton production. Primary export commodities include textiles, leather goods, sports equipment, chemicals, and carpets/rugs.

Pakistan is currently undergoing a process of economic liberalization, including the privatisation of all government corporations, which is aimed at attracting foreign investment and decreasing budget deficits. However, the country continues to face the challenges of rapidly growing population, high illiteracy, political instability, a hostile neighborhood and heavy foreign debt.

The economy of Afghanistan is listed as the 124th largest in the world in terms of nominal gross domestic product (GDP), and 102nd largest in the world in terms of purchasing power parity (PPP). With a population of around 41 million people, Afghanistan's GDP (nominal) stands at $14.58 billion as of 2021, amounting to a GDP per capita of $363.7 (according to a World Bank report). Its annual exports exceed $2 billion, with agricultural, mineral and textile products accounting for 94% of total exports. The nation's total external debt is $1.4 billion as of 2022.

The Afghan economy continues to improve due to the influx of expats, establishment of more trade routes with neighboring and regional countries, and expansion of the nation's agriculture, energy and mining sectors. The billions of dollars in assistance that came from expats and the international community saw this increase when there was more political reliability after NATO became involved in Afghanistan.

Despite holding over one trillion dollars in proven untapped mineral deposits, Afghanistan remains one of the least developed countries in the world. Its unemployment rate is over 23% and about half of its population lives below the poverty line. The main factor behind this has been the continuous war in the country, which deterred business investors and left much of the population fighting among each other instead of catching up with the rest of the world. Afghanistan has long sought foreign investment in order to improve its economy. The population of Afghanistan increased by more than 50% between 2001 and 2014, while its GDP grew eightfold. After the U.S. withdrawal from Afghanistan and the Taliban's return to power in 2021, the Biden administration decided to confiscate or withhold $9.5 billion worth of assets from the Afghanistan Central Bank to stop the Taliban from accessing it.

The official currency of Afghanistan is the afghani (AFN), which has an exchange rate of around 70 afghanis to 1 United States dollar. The country has a central bank called Da Afghanistan Bank (DAB). A number of local banks also operate in the country, including the Afghanistan International Bank, Azizi Bank, New Kabul Bank and Pashtany Bank.

The economy of Bhutan is based on agriculture and forestry, which provide the main livelihood for more than 60% of the population. Agriculture consists largely of subsistence farming and animal husbandry. Rugged mountains dominate the terrain and make the building of roads and other infrastructure difficult. Bhutan is among the richest by gross domestic product (nominal) per capita in South Asia, at $3,491 as of 2022, but it still places 153rd, and among the poorest in the world. The total gross domestic product is only $2,653 million, and 178th according to IMF.

Bhutan's economy is closely aligned with India's through strong trade and monetary links and dependence on India's financial assistance. Most production in the industrial sector is of the cottage industry type. Most development projects, such as road construction, rely on Indian migrant labour. Model education, social, and environment programs are underway with support from multilateral development organisations.

Each economic program takes into account the government's desire to protect the country's environment and cultural traditions. For example, the government, in its cautious expansion of the tourist sector, encourages visits by upscale, environmentally conscientious tourists. Detailed controls and uncertain policies in areas such as industrial licensing, trade, labour, and finance continue to hamper foreign investment. Hydropower exports to India have boosted Bhutan's overall growth, even though GDP fell in 2008 as a result of a slowdown in India, its predominant export market.

Since 1961, the government of Bhutan has guided the economy through five-year plans in order to promote economic development.^[117]

On 13 December 2023, Bhutan graduated from the UN's list of least developed countries (LDCs), making it only the 7th country to do so and the first in 3 years.^[118][119]

In ancient times, Maldives were renowned for cowries, coir rope, dried tuna fish (Maldive fish), ambergris (maavaharu) and coco de mer (tavakkaashi). Local and foreign trading ships used to load these products in the Maldives and bring them abroad.

Nowadays, the mixed economy of Maldives is based on the principal activities of tourism, fishing and shipping. This results from the Maldives' strategic geographic positioning near crucial sea routes essential for China's energy provisions. Consequently, China has persistently utilized its economic resources to enhance its sway over the Maldivian government.

Tourism is the largest industry in the Maldives, accounting for 28% of GDP and more than 60% of the Maldives' foreign exchange receipts. It powered the current GDP per capita to expand 265% in the 1980s and a further 115% in the 1990s. Over 90% of government tax revenue flows in from import duties and tourism-related taxes.

Fishing is the second leading sector in the Maldives. The economic reform program by the government in 1989 lifted import quotas and opened some exports to the private sector. Subsequently, it has liberalized regulations to allow more foreign investment.

Agriculture and manufacturing play a minor role in the economy, constrained by the limited availability of cultivable land and shortage of domestic labour. Most staple foods are imported.

Industry in the Maldives consists mainly of garment production, boat building, and handicrafts. It accounts for around 18% of GDP. Maldivian authorities are concerned about the impact of erosion and possible global warming in the low-lying country.

Among the 1,190 islands in the Maldives, only 198 are inhabited. The population is scattered throughout the country, and the greatest concentration is on the capital island, Malé. Limitations on potable water and arable land, plus the added difficulty of congestion are some of the problems faced by households in Malé.

Development of the infrastructure in the Maldives is mainly dependent on the tourism industry and its complementary tertiary sectors, transport, distribution, real estate, construction, and government. Taxes on the tourist industry have been plowed into infrastructure and it is used to improve technology in the agricultural sector.

The economy of Nepal is developing category and largely dependent on agriculture and remittances. Until the mid-20th century Nepal was an isolated pre-industrial society, which entered the modern era in 1951 without schools, hospitals, roads, telecommunications, electric power, industry, or civil service. The country has, however, made progress toward sustainable economic growth since the 1950s. The country was opened to economic liberalization, leading to economic growth and improvement in living standards when compared to the past. The biggest challenges faced by the country in achieving higher economic development are the frequent changes in political leadership, as well as corruption.

Nepal has consistently been ranked as one of the poorest countries in the world.

Nepal has used a series of five-year plans in an attempt to make progress in economic development. It completed its ninth economic development plan in 2002; its currency has been made convertible, and 17 state enterprises have been privatised. Foreign aid to Nepal accounts for more than half of the development budget. Government priorities over the years have been result in the development of transportation and communication facilities, agriculture, and industry. Since 1975, improved government administration and rural development efforts have been emphasised.

Agriculture remains Nepal's principal economic activity, employing about 65% of the population and providing 31.7% of GDP. Only about 20% of the total area is cultivable; another 40.7% is forested (i.e., covered by shrubs, pastureland and forest); most of the rest is mountainous. Fruits and vegetables (apples, pears, tomatoes, various salad greens, peach, nectarine, potatoes), as well as rice and wheat are the main food crops. The lowland Terai region produces an agricultural surplus, part of which supplies the food-deficient hill areas.

GDP is heavily dependent on remittances (9.1%) of foreign workers. Subsequently, economic development in social services and infrastructure in Nepal has not made dramatic progress. A countrywide primary education system is under development, and Tribhuvan University has several campuses. Although eradication efforts continue, malaria had been controlled in the fertile but previously uninhabitable Terai region in the south. Kathmandu is linked to India and nearby hill regions by road and an expanding highway network. The capital was almost out of fuel and supplies, due to a crippling general strike in southern Nepal on 17 February 2008.

Major towns are connected to the capital by telephone and domestic air services. The export-oriented carpet and garment industries have grown rapidly in recent years. Together, they account for approximately 70% of the country's merchandise exports.

The Cost of Living Index in Nepal is comparatively lower than many countries but not the least. The quality of life has declined to a much less desirous value in recent years. In the 2021 Global Hunger Index, Nepal ranks 76th out of the 116 countries with sufficient data to calculate 2021 GHI scores. With a score of 19.1, Nepal has a level of hunger that is moderate. Nepal has the worst road infrastructure in Asia.

The mixed economy of Sri Lanka was worth $84 billion by nominal gross domestic product (GDP) in 2019^[120] and $296.959 billion by purchasing power parity (PPP).^[121] The country had experienced an annual growth of 6.4 percent from 2003 to 2012, well above its regional peers. This growth was driven by the growth of non-tradable sectors, which the World Bank warned to be both unsustainable and unequitable. Growth has slowed since then. In 2019 with an income per capita of 13,620 PPP Dollars^[122] or 3,852 (2019) nominal US dollars,^[123][124] Sri Lanka was re-classified as a lower middle income nation with the population around 22 million (2021)^[125] by the World Bank from a previous upper middle income status.^[126]

Sri Lanka has met the Millennium Development Goal (MDG) target of halving extreme poverty and is on track to meet most of the other MDGs, outperforming other South Asian countries. Sri Lanka's poverty headcount index was 4.1% by 2016. Since the end of the three-decade-long Sri Lankan Civil War, Sri Lanka has begun focusing on long-term strategic and structural development challenges, and has financed several infrastructure projects.

High foreign debt, economic mismanagement under the governments of Gotabhaya and Mahinda Rajapaksa^[127], and lower tourism revenue led to the country defaulting on its sovereign debt in April 2022.^[128] The economy contracted 7.8% in 2022, and the percentage of the population earning less than $3.65 a day doubled to around 25% of the population. On March 20th 2023, the IMF has loaned $3 billion USD to the country as part of a 48-month debt relief program.^[129]