India is expected to remain one of the fastest-growing major economies in the Asia-Pacific region, according to Moody's Analytics, even as several external pressures cloud the outlook. The assessment points to strong relative momentum for India compared with many regional peers facing a broader slowdown.
The main risks highlighted around the outlook include higher oil prices, fresh US tariffs and weaker global growth. For India, elevated energy costs can feed into inflation and raise import bills, while softer world demand and trade friction could weigh on exports and business sentiment.
Moody's Analytics also flagged El Nino as an important threat because it can affect both food and energy vulnerability. Weather disruption can pressure agricultural output and food prices, while heat-related demand can add strain to energy use, creating another challenge for households and policymakers.
Even with those headwinds, India is still seen as better placed than much of the region to maintain strong growth. The outlook also suggests that AI-driven investment could provide support, helping offset some of the drag from oil, trade and climate-related risks.
