India to be fastest-growing economy among emerging markets
What's the story
Moody's Ratings has projected that India will be the fastest-growing economy among emerging markets and the Asia Pacific region. The international ratings agency has forecasted a 7% GDP growth for India in 2025, followed by a 6.4% increase in 2026. The projection highlights India's economic resilience amid global uncertainties, driven by strong domestic growth drivers.
Economic stability
Economic resilience amid global uncertainties
Despite the Indian rupee (INR)'s depreciation against the dollar, Moody's has noted that most rated companies have robust currency risk management strategies or strong financial buffers. Investment-grade entities have also shown access to international capital markets. This indicates a high level of resilience in India's economy, even in the face of global uncertainties and currency fluctuations.
Regional forecast
APAC's average GDP growth to remain stable
Moody's has also projected that the average GDP growth in the Asia-Pacific (APAC) region will be stable at 3.4% in 2026. This projection is slightly lower than the expected growth of 3.6% in 2025 and marginally higher than the predicted average of 3.3% for the year 2024, according to Moody's forecasts.
Market dynamics
Emerging markets to drive regional GDP growth
Moody's has also highlighted that emerging markets will be the main drivers of GDP growth in the APAC region. The agency predicts an average growth of 5.6% for these markets, compared to a much lower average of 1.3% for advanced markets. This projection underscores the potential economic dynamism and resilience of emerging economies like India in the coming years.