Moody’s Ratings has projected that India will remain the fastest-growing major emerging market, leading the Asia-Pacific region with 7% GDP growth in 2025 and 6.4% in 2026. The agency said India’s strong domestic demand and resilient growth engines continue to drive the economy even as global uncertainties persist.
Moody’s highlighted that despite the rupee hitting record lows against the US dollar, most rated Indian companies have managed currency risks effectively through hedging and robust financial buffers. Investment-grade firms also continue to access overseas capital markets without difficulty.
“India will lead growth among emerging markets and across the region,” the agency said, noting that Asia-Pacific GDP is expected to grow 3.6% in 2025 and 3.4% in 2026. Emerging markets in the region will expand at an average 5.6%, far outpacing the 1.3% projected for advanced economies.
Moody’s said India’s expanding economic base, stable corporate performance, and strong investment momentum will keep it ahead of regional peers through 2026.
