India’s domestic growth drivers underpin its economic resilience amid global uncertainty, it added.
The report added that even when the Indian rupee has continued to weaken against the US dollar, most rated companies have active currency risk management or strong financial buffers, while investment-grade entities have demonstrated access to international capital markets. “India will lead growth among emerging markets and across the region, with GDP growing 7% in 2025 and 6.4% in 2026,” Moody’s Ratings said.
The projected average GDP growth in APAC (Asia-Pacific) is expected to remain steady at 3.4% in 2026, compared with 3.3% in 2024 and expected growth of 3.6% in 2025, Moody’s said.
On a weighted average basis, emerging markets would drive GDP growth in the region, with average growth of 5.6%, compared to average growth of 1.3% in advanced markets, Moody’s said. The report warned of geopolitical tensions as potential downside risks to growth. Talking of the trend, the report added that Artificial intelligence (AI) would also start to feature in consumer goods, and businesses would continue to invest billions next year as they seek solutions that secure their competitive advantage, particularly in AI.