New Delhi, 05 May (H.S.): Amid global geopolitical crises, India has remained the most resilient and strong economy among emerging markets since 2020. Its large foreign exchange reserves have helped control currency volatility and strengthen confidence during global shocks, said global credit rating agency Moody's Ratings.
In a report released on Tuesday, Moody's Ratings said India is in a better position among emerging countries and the country will maintain strong buffers during any future stress. Due to clear and reliable monetary policy framework, stable inflation expectations, and the ability to adjust exchange rates when needed, India is well-positioned to handle future shocks.
According to the report, India has sufficient and massive foreign exchange reserves to prevent currency volatility. The rating agency said India's reliance on domestic financing is balanced by strong local markets and better reserves. However, India's relatively high debt burden and weak fiscal balance consistently limit the available space to deal with successive shocks. It stated that before recent pressures, India had already taken key policy decisions supporting stability.
Moody's assessed the resilience of emerging economies based on their financing costs and market access amid volatile financial conditions. The report focused on major emerging market countries including India, Indonesia, Mexico, Malaysia, Thailand, Brazil, South Africa, Nigeria, Turkey, and Argentina. Four rounds of stress were also analyzed.
Additionally, these include the beginning of the COVID-19 global pandemic in early 2020, the spike in global inflation in 2022 and the associated aggressive monetary policy stance of the US Federal Reserve, the US regional banking crisis in early 2023, and renewed tariff pressures in 2025.
Moody's noted that India showed some of the strongest market resilience across recent global shocks, with stress largely absorbed without sharp deterioration in key indicators. Strong domestic demand will continue supporting India's growth trajectory, with GDP projected at 7% in 2025 and 6.4% in 2026. India's economic expansion is expected to remain among the strongest globally, making it the fastest-growing G-20 economy.
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Hindusthan Samachar / Jun Sarkar
