New Delhi, June 13 -- Environmental sustainability has emerged as a central concern in global economic governance. For regional and South Asian countries, balancing economic growth, poverty reduction, industrialization, and environmental protection remains a major challenge. At the same time, the adoption of ambitious environmental regulations by the European Union, particularly under the European Green Deal, is reshaping international trade and supply chains. These developments carry significant implications for South Asian economies, many of which depend heavily on exports to Europe.

South Asia, comprising countries such as India, Bangladesh, Pakistan, Sri Lanka, Nepal, and Bhutan, is home to nearly one-fourth of the world's population...