Indian Economy News

India among most resilient emerging markets to global shocks: Moody’s Ratings

India has been identified among the most resilient emerging markets to global shocks, according to Moody’s Ratings, reflecting the country’s strong macroeconomic fundamentals and policy framework. The assessment highlights India’s robust domestic demand, diversified economic structure, and stable financial system as key factors supporting resilience amid global uncertainties such as geopolitical tensions, inflationary pressures and tightening financial conditions. India’s consistent economic growth trajectory, supported by structural reforms and prudent fiscal management, has further strengthened its ability to withstand external shocks. The report also notes that India’s relatively lower dependence on exports compared to several emerging economies provides an additional buffer against global demand volatility, enabling it to sustain growth momentum even during periods of external stress.

The report further underscores the strength of India’s banking sector, improved asset quality and enhanced regulatory oversight in maintaining financial stability. Government initiatives focused on infrastructure investment, manufacturing expansion and digitalisation have contributed to sustained economic momentum and increased investor confidence. The country’s expanding services sector, growing middle class and continued reforms in logistics, taxation and ease of doing business further reinforce its economic resilience. Going forward, India is expected to remain a key growth driver among emerging economies, supported by favourable demographics, rising consumption and policy continuity. While global risks such as commodity price volatility and geopolitical uncertainties persist, India’s strong domestic fundamentals are likely to mitigate external vulnerabilities. Overall, the assessment highlights India’s capacity to sustain stable growth and positions it as an attractive destination for long-term investment. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.