FY 2024-25 Despite all the challenges that came out in the second half of the year, India has become the best emerging market economy for the fourth consecutive year. According to Mint’s Emerging Markets Tracker, in the second half of the last financial year, India not only faced a terrible market crash but also faced a big fall in the rupee. Gaura Sengupta, Chief Economist of IDFC First Bank, said, “India will be seen as a safe shelter under certain conditions between Emerging Market and Asian economies as the country’s economy is base on domestic demand. Along with this, our risk on tariffs is low.”
Had to struggle in second half
However, compared to the last few years, India had to struggle a lot in maintaining its top spots throughout the year last year. There was a time in August 2024 when India reached the sixth position slipping in this list. Not only this, India reached 7th position in February 2025. But a strong performance at the beginning of the year helped India get ahead of its rivals like China and the Philippines.
Exodus of foreign investors in trouble
India managed to maintain its first rank for the first 4 months of FY 2024-25, but the exodus of foreign investors from Indian stock markets since September pushed India down. However, optimism in India seems to be returning back as the country is in a better position in terms of economic development as well as possible loss from American tariffs. The trade war between China and the US has once again inspired investors going towards China to go towards India.
India also performed well in the case of inflation
India’s strong growth in the emerging market was weakened mainly due to unrest in the external environment such as the decline in the stock market, the decline in currency and the fall in exports. However, when it comes to overall economic growth and manufacturing perchasing manager index, India has scored the highest marks throughout the year. In the case of inflation, India’s performance was the strongest compared to the rest of the countries. These figures are based on 7 of the world’s 9 emerging market economies.
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