India’s growth rate will be 6.5 percent in the current financial year 2025-26 on the basis of measures and constant monetary ease, which will be the highest in G20 countries. At the same time, the country will continue to attract capital and be able to withstand any foreign withdrawal.
Moody’s Ratings, in its report released on the emerging markets on Tuesday, said that such economies are clouded due to the brainstorming of American policies and its ability to give a new shape to global capital flows, supply chains, trade and geopolitics. However, large emerging markets have resources to deal with it.
The report said, the economic activity in the fastest growing economies will be slightly slower than high levels, but will be strong this year and next year. In China, the infrastructure and priority high technology remains the main drivers of export and investment growth, while domestic consumption remains weak.
Moody’s said, “Tax measures and constant (monetary) supported, India’s growth will be the highest in advanced and emerging G20 countries.”
The rating agency has also estimated an increase of 6.5 percent for FY 2025-26 in India, which is less than 6.7 percent in 2024–25. He estimated an average of 4.5 percent of inflation, which was 4.9 percent in the last financial year.
Moody’s also said that uncertainty in American policies will increase the risk of capital withdrawal, but large emerging markets like India and Brazil are in better positions to attract and maintain global capital in such circumstances on the strength of their large and domestic oriented economies, large domestic capital markets, medium policy reliability and adequate foreign exchange reserves.
The report said, the growth of emerging markets will remain slow but firm in 2025-26, with a widespread difference to each country’s situation. The Asia-Pacific will be the highest increase, but the integration of the region in global trade means that it is the most sensitive to their ability to slow down American fees and growth.
The G20 is a major platform of international economic cooperation with 20 member countries.
