India Poised To Lead Emerging Market Growth In 2025 And 2026: Moody's

New Delhi, Nov 28: India is expected to continue being the fastest-growing major economy not only among emerging markets but also in the broader Asia Pacific region in 2025, says Moody’s Ratings in its latest assessment. It estimates that India’s GDP will expand by 7% in 2025, followed by 6.4% in 2026, placing the country well ahead of peers in terms of economic momentum.

Strong Domestic Drivers Support Economic Resilience

Moody’s pointed out that India’s domestic growth engines continue to strengthen its resilience amid global uncertainty. But even as the world economy seems to be driven by external pressures, internal demand, coupled with structural improvements, keeps the country on a stable path.

It also noted that though the Indian rupee has depreciated against the US dollar, rated companies are characterized by either strong currency risk management arrangements or ample financial buffers. Investment-grade firms in particular have maintained access to international capital markets, underscoring financial flexibility.

India Outpaces Regional and Emerging Market Peers

According to Moody’s, India’s economy will continue to expand at a much higher rate than other Asia-Pacific economies and other developing economies. Overall growth in the Asia-Pacific on average is expected to be approximately 3.5% for the period of 2025-26, and average growth for emerging market economies is projected to be 5.6%. India’s economic growth prospects are underpinned by strong economic fundamentals and continued global stability.

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