India to Lead Emerging Market Growth in 2025 with 7% GDP Rise, Says Moody\u2019s Ratings<\/p>\n
India is set to outperform major global and regional economies in 2025, with Moody\u2019s Ratings projecting a 7% GDP rise, placing the country firmly at the forefront of emerging market growth. Despite global volatility, policy uncertainty and tightening financial conditions across the world, India\u2019s economic momentum continues to stand out as resilient and broad-based.<\/p>\n
In its latest assessment released on Friday, Moody\u2019s said India will not only lead growth among emerging market economies but also outpace all countries in the Asia-Pacific (APAC) region. The rating agency expects India\u2019s GDP to expand 7% in 2025 and 6.4% in 2026, supported by strong domestic demand, steady investments, and the country\u2019s robust financial system.<\/p>\n
Moody\u2019s highlighted that while the broader APAC region is expected to maintain steady momentum, no economy comes close to India\u2019s projected pace. The agency estimates:<\/p>\n
APAC GDP growth at 3.6% in 2025<\/p>\n<\/li>\n
APAC stabilizing at 3.4% in 2026, compared to 3.3% in 2024<\/p>\n<\/li>\n<\/ul>\n
India\u2019s projected 7% growth is nearly double the regional average and far ahead of the 1.3% average growth expected in advanced APAC economies, such as Japan, South Korea, Australia and New Zealand.<\/p>\n
This significant divergence reflects India\u2019s expanding consumer base, resilient services sector, and strong investment cycle\u2014factors Moody\u2019s believes will keep the country\u2019s growth engine running even as global headwinds intensify.<\/p>\n
Also Read\u00a0 : Meesho IPO Opens Next Week With Price Band, Dates and Lot Size Now Announced<\/a><\/p>\n Moody\u2019s noted that APAC\u2019s economic narrative will continue to be shaped by emerging markets in 2025 and beyond. On a weighted-average basis, emerging markets will grow at 5.6%, vastly outperforming the 1.3% expected in advanced economies.<\/p>\n India\u2019s contribution to this expansion remains outsized. Strong household consumption, public and private capex, and improving export competitiveness are expected to reinforce the country\u2019s position as the region\u2019s primary growth driver.<\/p>\n Moody\u2019s emphasised that India\u2019s domestic growth engines\u2014including manufacturing activity, services expansion, and infrastructure spending\u2014provide the resilience needed to withstand a global slowdown.<\/p>\n The rating agency outlined several domestic factors underpinning India\u2019s continued expansion:<\/p>\n India\u2019s rising disposable incomes and expanding middle class continue to support robust consumption growth, accounting for more than half of GDP.<\/p>\n With both central and state governments maintaining high capital expenditure, and private sector investments gradually reviving, the investment cycle is expected to remain stable.<\/p>\n Sectors such as IT, financial services, real estate, professional services and hospitality continue to demonstrate resilience, anchoring economic activity.<\/p>\n Government programs such as Production-Linked Incentives (PLI) are drawing more companies into domestic manufacturing, creating new capacity and demand.<\/p>\n Moody\u2019s acknowledged that the Indian rupee\u2019s persistent weakness against the US dollar has raised concerns. However, the agency underlined that most rated companies have effective currency risk management frameworks, including hedging strategies and natural financial buffers.<\/p>\n Investment-grade Indian firms, it added, continue to maintain strong access to international capital markets, helping them navigate the volatility in global interest rates and currency markets.<\/p>\n The rating agency expects the rupee to remain under some pressure in the near term due to global dollar strength, though not at levels that threaten corporate balance sheets or overall stability.<\/p>\n Moody\u2019s reiterated that India\u2019s growth resilience\u2014despite geopolitical tensions, high global interest rates and external demand softness\u2014has strengthened its position as a preferred investment destination.<\/p>\n Foreign investment flows, particularly in manufacturing, services and digital infrastructure, continue to show strength. The country\u2019s improving governance, regulatory clarity and expanding digital ecosystems are helping sustain high investor confidence in both the public and private markets.<\/p>\n The agency concluded that India\u2019s strong macro fundamentals, combined with a favourable demographic profile and structural reforms, will ensure that the country remains a global growth engine through 2025 and 2026.<\/p>\n While challenges such as global trade pressures, inflation uncertainty and currency fluctuations remain, Moody\u2019s believes India\u2019s economic buffers are robust enough to withstand these risks.<\/p>\n With the 7% GDP rise in 2025, India is expected to not only lead emerging markets but also shape the growth trajectory of the entire Asia-Pacific region.<\/p>\n India to Lead Emerging Market Growth in 2025 with 7% GDP Rise, Says Moody\u2019s Ratings India is set to outperform major global and regional economies in 2025, with Moody\u2019s Ratings projecting a 7% GDP rise, placing the country firmly at the forefront of emerging market growth. Despite global volatility, policy uncertainty and tightening financial conditions […]<\/p>\n","protected":false},"author":4,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1362],"tags":[],"ppma_author":[1331],"class_list":{"0":"post-18215","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-finance-and-economy-news"}," _eael_post_view_count":0,"authors":[{"term_id":1331,"user_id":4,"is_guest":0,"slug":"sourabh","display_name":"Sourabh Sharma","avatar_url":{"url":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/11\/Sourabh-Sharma.png","url2x":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/11\/Sourabh-Sharma.png"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":""}],"_links":{"self":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/18215","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/comments?post=18215"}],"version-history":[{"count":1,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/18215\/revisions"}],"predecessor-version":[{"id":18217,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/18215\/revisions\/18217"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media\/18216"}],"wp:attachment":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media?parent=18215"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/categories?post=18215"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/tags?post=18215"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/ppma_author?post=18215"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Emerging Markets Expected to Drive APAC\u2019s Growth, With India Leading the Pack<\/h2>\n
Resilient Domestic Drivers Keep India on Strong Growth Path<\/h2>\n
1. Strong private consumption<\/h3>\n
2. Healthy investment momentum<\/h3>\n
3. Services sector dominance<\/h3>\n
4. Manufacturing push<\/h3>\n
Rupee Weakness Not a Major Concern as Corporates Manage Risks Well<\/h2>\n
India\u2019s Economic Resilience Enhances Global Investor Confidence<\/h2>\n
A Positive Outlook as India Anchors Global Growth Amid Uncertainty<\/h2>\n
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