India to Lead Emerging Market Growth with 7% GDP Rise in 2025: Moody’s
India is projected to lead economic growth across emerging markets and the Asia-Pacific region with a robust 7% GDP expansion in 2025, followed by 6.4% growth in 2026, according to Moody’s Ratings.
Key Takeaways
- India’s GDP growth forecast: 7% in 2025, 6.4% in 2026
- Will lead growth among emerging markets and Asia-Pacific region
- Domestic growth drivers underpin economic resilience
- APAC average growth: 3.6% in 2025, 3.4% in 2026
Economic Resilience and Regional Outlook
Moody’s emphasized that India’s domestic growth drivers support its economic resilience despite global uncertainties. The rating agency noted that while the Indian rupee has continued to weaken against the dollar, most rated companies maintain active currency risk management or strong financial buffers.
“India will lead growth among emerging markets and across the region, with GDP growing 7 per cent in 2025 and 6.4 per cent in 2026,” Moody’s Ratings stated in their assessment.
Broader Asia-Pacific Context
The projected average GDP growth for the Asia-Pacific region remains steady at 3.4% in 2026 compared to 3.3% in 2024, with expected growth of 3.6% in 2025. Emerging markets are driving regional expansion with average growth of 5.6%, significantly outpacing the 1.3% average growth in advanced markets.
Investment-grade entities in India have demonstrated consistent access to international capital markets, further supporting the country’s economic stability and growth trajectory.
