India to lead emerging market growth with 7% GDP: Moody’s

India is set to outperform emerging markets and the broader Asia-Pacific region in the coming years, with Moody’s Ratings projecting a robust 7% GDP growth in 2025 and 6.4% in 2026. The rating agency said on Friday that India’s strong domestic economic drivers continue to support its resilience amid persistent global uncertainty.According to Moody’s, India’s growth momentum stands out even as the rupee remains under pressure against the US dollar. Most rated Indian companies, however, have effective currency risk management practices or sufficient financial buffers, while investment-grade firms continue to access global capital markets without difficulty.
“India will lead growth among emerging markets and across the region,” Moody’s said, highlighting that the country’s structural strengths and sustained investment activity will underpin expansion over the next two years.For the broader Asia-Pacific region, Moody’s expects GDP growth to remain largely stable—rising to 3.6% in 2025 before easing slightly to 3.4% in 2026. Emerging markets within APAC are set to drive this momentum, with an average growth rate of 5.6%, significantly higher than the 1.3% projected for advanced economies.Moody’s noted that India’s strong economic outlook, combined with steady macro fundamentals, positions it as the primary engine of growth within the region through 2025 and beyond.

(Business Correspondent)