New Delhi, May 6: Moody’s, one of the world’s leading credit rating agencies, has placed India at the forefront of emerging markets globally. The agency attributes this position to India’s robust foreign exchange reserves and stable policies, which set the country apart from other economies.
In its latest report, Moody’s stated that India is significantly better positioned to withstand global shocks compared to other emerging nations.
The report highlights three strong pillars of India’s economy: a substantial foreign exchange reserve, a stable policy framework, and a large domestic capital market. Together, these factors reduce the country’s reliance on external funding.
According to Moody’s, emerging markets have faced repeated challenges since 2020. These include the COVID-19 pandemic, a global surge in oil prices, aggressive interest rate hikes by the U.S. Federal Reserve in 2022, a regional banking crisis in 2023, and newly imposed tariffs in 2025.
Amid these circumstances, Moody’s found that India managed to navigate turmoil without a sharp increase in funding costs or a decrease in access to capital markets, a significant achievement compared to many other countries.
Furthermore, the rating agency noted that India’s monetary policy framework remains clear and consistent, with stable inflation expectations and the ability to adjust exchange rates when necessary. This combination helps maintain investor confidence even in deteriorating external conditions.
The report indicates that India will enter any future global stress periods not only strong but also with accessible safety measures. This distinction becomes crucial as markets evolve rapidly and the response time for policy adjustments decreases.
Moody’s compared India to several other economies, including Indonesia, Mexico, Malaysia, Thailand, Brazil, South Africa, Nigeria, and Turkey. All of these countries have faced post-pandemic stress, achieving varying levels of success.
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My name is Ganpat Singh Choughan. I am an experienced content writer with 7 years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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