India to outpace emerging markets with 7 pc GDP growth in 2025: Moody’s

Moody’s Ratings on Friday (November 28) stated that with GDP growth forecast at 7 per cent in 2025 and 6.4 per cent the following year, India is set to lead expansion among emerging markets and across the Asia-Pacific region.

Resilience amid global uncertainty

The agency added that India’s domestic growth engines continue to support its economic resilience despite global uncertainty.

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Moody’s noted that although the Indian rupee has continued to weaken against the US dollar, most rated companies have effective currency risk management or strong financial buffers in place, while investment-grade firms have maintained access to international capital markets.

India leads regional growth

"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 said.

Its projected average GDP growth in APAC (Asia-Pacific) will remain steady at 3.4 per cent in 2026 compared with 3.3 per cent in 2024 and expected growth of 3.6 per cent in 2025.

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On a weighted average basis, emerging markets will drive GDP growth in the region, with average growth of 5.6 per cent, compared to average growth of 1.3 per cent in advanced markets, Moody's said.

(With agency inputs)