India Set to Lead Emerging Markets with 7% GDP Growth in 2025, Says Moody’s

India is set to be a key driver of growth in emerging markets, with a projected GDP growth of 7% in 2025. According to Moody’s, India will outpace other nations in the Asia-Pacific (APAC) region, supported by strong domestic growth factors despite global economic uncertainty. 

India's Economic Resilience Amid Global Challenges 

India is projected to lead economic growth in both emerging markets and across the Asia-Pacific region. Moody's anticipates a 7% rise in India’s GDP in 2025, followed by 6.4% in 2026.  

The country's robust domestic growth drivers, such as infrastructure development, strong consumption demand, and investment, are key to maintaining economic resilience amidst global volatility. This growth is expected to significantly outperform the regional average of 3.4% in 2026, and the 3.3% forecast for 2024. 

Strength in Currency Risk Management and Financial Buffers 

While the Indian rupee has weakened against the dollar, Moody's notes that most rated Indian companies have sound currency risk management strategies in place. Additionally, the presence of strong financial buffers among investment-grade entities has ensured their continued access to international capital markets, minimising the impact of currency fluctuations. 

Growth in APAC: India Leads the Charge 

In the broader APAC region, India’s 7% GDP growth in 2025 will stand in stark contrast to the 3.6% expected for the region as a whole. While advanced markets are projected to grow at a modest 1.3%, emerging markets like India are forecast to drive the region’s overall economic performance, with a weighted average growth of 5.6% in 2025. 

Read More: India to Hit $5 Trillion Economy in FY29 as IMF Revises Forecast! 

Conclusion 

India’s economy is on a solid growth trajectory, with a projected 7% rise in GDP for 2025, leading both emerging markets and the Asia-Pacific region. Domestic factors such as infrastructure investment, consumption growth, and effective currency risk management will continue to support this upward momentum in the coming years. 

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