Moody's Ranks India as Most Resilient Emerging Market

Moody's Ratings designated India as one of the most resilient and robust large emerging market economies over the last five years. The agency report finds that India is better positioned than peers such as Brazil, Mexico, and Turkey to absorb global shocks.

This stability is attributed to three primary pillars: strong foreign exchange reserves, deep domestic capital markets, and a predictable policy framework. Between 2020 and 2025, India navigated the COVID-19 pandemic, the 2022 inflation surge, U.S. Federal Reserve rate hikes, 2023 banking turmoil, and 2025 tariff pressures without losing access to capital markets or seeing sharp increases in funding costs.

While the agency noted that fiscal space remains a constraint, it praised the Government of India for using monetary policy to anchor inflation expectations. The report concludes that flexible exchange rates have helped maintain investor confidence during periods of global volatility.