By Anjali Sharma
WASHINGTON – Moody’s Ratings on Friday projected a 7% GDP expansion in 2025 for India and 6.4% in the next year, India will lead growth among emerging markets and across the Asia Pacific region, it added.
Moody’s stated that India’s domestic growth drivers underpin its economic resilience amid global uncertainty.
Its projected average GDP growth in APAC will remain steady at 3.4 per cent in 2026, compared with 3.3 per cent in 2024 and the expected growth of 3.6 per cent in 2025.
Moody’s stated the emerging markets will drive GDP growth in the region, with average growth of 5.6 per cent, compared to average growth of 1.3 per cent in advanced markets.
The Indian rupee has continued to weaken against the dollar, most rated companies have active currency risk management or strong financial buffers, while investment-grade entities have demonstrated access to international capital markets, it said.
International Monetary Fund also projected India to register a 6.6 per cent growth rate for the fiscal year 2025–26.
The IMF report is about the stabilizing impact of Goods and Services Tax reforms, which are likely to cushion the Indian economy from external shocks the recent 50% tariff hike imposed by the US on select imports.
The IMF acknowledged that streamlining GST compliance, broadening the tax base, and improving coordination between the Centre and States have strengthened India’s fiscal landscape.
It said that these measures are expected to help India absorb trade-related setbacks and continue driving growth from within.
IMF emphasized that India’s aspiration to transition into an advanced economy hinges on continuing its comprehensive structural reform agenda.
Labour market flexibility and ease of doing business, land acquisition reforms, education and health sector enhancements, skilling initiatives to match a modern workforce, and financial sector deepening to improve credit access for MSMEs, it concluded.
