India should take lead in regional integration: World Bank

India ought to take the lead in furthering integration of South Asia, which could yield dramatic results in the subcontinent, a World Bank report says.

The report 'South Asia: Growth and Regional Integration', which was released today, says that while GDP growth in the Saarc countries is encouraging, India accounts for three quarters of the region's GDP and its growth has a decisive impact on the overall regional growth.

Briefing the media on the report, Bank lead economist Priya Basu and Sector Manager for South Asia Kapil Kapoor said growth in India, and South Asia, was triggered by first generation reforms, macroeconomic stablisation, economic deregulation and greater global integration.

Yet, improving human development outcomes continued to be a challenge. To address the challenge of poverty, for instance, faster growth was required.

This, in turn, needed higher investment "" from the current 23 to 24 per cent of the GDP to more than 35 per cent of the GDP. Higher investment could be achieved by reducing fiscal deficit, lowering costs of doing business and improving institutions.

The report says that South Asia is the least integrated region in the world.