India Set to Lead Emerging Market Growth with 7% GDP Surge in 2025

India is projected to experience a robust economic expansion in the coming years, with a forecasted growth rate of 7% for its gross domestic product (GDP) in 2025. According to a report released by Moody’s Ratings on November 28, 2025, this growth will position India as a leader among emerging markets and across the broader Asia-Pacific region.

The report outlines that India’s economic performance is underpinned by strong domestic growth drivers, which contribute to its resilience in the face of global economic uncertainties. Moody’s anticipates that the growth will slightly moderate to 6.4% in 2026, reflecting a steady economic trajectory for the country.

Despite ongoing challenges, including a weakening of the Indian rupee against the US dollar, companies rated by Moody’s have demonstrated effective currency risk management strategies. Many have established robust financial buffers, ensuring their stability in international markets. Investment-grade entities, in particular, have shown a significant ability to access global capital markets, providing them with additional financial resilience.

Emerging Markets Outpace Advanced Economies

Moody’s highlighted that while India leads the emerging market growth, the overall average GDP growth for the Asia-Pacific region is projected to remain stable at 3.4% in 2026, a slight increase from 3.3% in 2024. The anticipated growth for 2025 stands at 3.6%. In comparison, the emerging markets are expected to achieve an average growth rate of 5.6%, significantly outpacing advanced economies, which are projected to grow by only 1.3% on average.

This growth pattern underscores the shifting dynamics of the global economy, where emerging markets are increasingly driving economic expansion. India’s ability to maintain a strong growth trajectory can be attributed to its diverse economic base and strategic investments in various sectors.

As countries navigate the complexities of the global economic landscape, India’s projected performance serves as a beacon of optimism for investors and policymakers alike. The resilience shown by Indian firms in managing currency and financial risks will be crucial as the nation continues to solidify its position as a leader in emerging market growth.