According to the annual World Bank report, Global Development Finance 2007, released on 29 May 2007, net capital flows to South Asia reached a record $40.1 billion (3.6 percent of GDP) in 2006, up from $28.3 billion (2.8 percent of GDP) in 2005, with most of the increase in going to India. The Report says that sustaining recent high growth in South Asia will require continued economic reform, expansion of infrastructure capacity, and further reduction of security threats. The report predicts that these efforts will also contribute to higher capital inflows, which have been spurred by progress in these areas in recent years.

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