Archive · 26 Jan 2026
India Slips to Sixth in Emerging Markets
India's economy is facing some challenges.
The country dropped to sixth place among emerging markets because its stock market did poorly, the rupee lost value, and exports grew slowly.
Goldman Sachs, a big financial company, thinks that if a trade deal with the US is delayed, the Reserve Bank of India might cut interest rates to help the economy.
The economy is doing well in some areas, like rural regions and lower-income families, because of good harvests and government support.
However, wealthier people are spending less, and there are concerns about jobs and the use of artificial intelligence.
The government has been helping the economy by cutting taxes, which has led to strong growth in 2025.
But if the US trade deal is delayed, the government and the RBI might need to take more steps to keep the economy strong.
India dropped to sixth place in emerging markets due to weak equity markets, rupee depreciation, and slow export growth.
China topped the list, while Thailand and Malaysia secured the second and third spots, respectively.
Goldman Sachs suggests the RBI may cut rates further if the India-US trade deal is delayed beyond the first quarter of FY27.
India's economy shows mixed signs, with strong growth in rural areas and lower-income households but slowing consumption among wealthier groups.
The government's fiscal policies, including tax cuts, supported a real GDP growth of 7.6% in 2025, but nominal GDP growth hit a six-year low.
- Who
- India, Reserve Bank of India (RBI), Goldman Sachs
- What
- India's economic challenges and potential RBI rate cuts
- When
- Beyond the first quarter of FY27 if the trade deal is delayed
- Where
- India
- Why
- To support economic growth amid trade-related headwinds and mixed consumption outlook
- India's Position
- 6th
- China's Position
- 1st
- Thailand's Position
- 2nd
- Malaysia's Position
- 3rd
- India's GDP Growth (Q2 2025)
- 8.2%
- India's Export Growth (Dec 2025)
- 1.9% YoY
- India's Rupee Depreciation (2025)
- 4.9%
- FPI Outflows (2025)
- ₹1.7 trillion
- Expected India-US Trade Deal Timeline
- First quarter of FY27
- Real GDP Growth (2025)
- 7.6% YoY
- Nominal GDP Growth (2025)
- Six-year low (excluding pandemic)
Sources
India drops to sixth among emerging markets in December as global headwinds bite
Rupee at 92/USD: Imports, overseas education, travel hurt; exporters gain
RBI may cut rates further if India-US trade deal is delayed: Goldman Sachs
RBI Could Cut Interest Rates Further If India–US Trade Deal Is Delayed, Says Goldman Sachs
Weakening rupee to affect imports; exporters likely to gain
'Nominal GDP growth for FY27 seen at 10-10.5%'
How to position your portfolio for India’s ‘2026 catch-up trade’? Top Fund Managers reveal 3 big catalysts
UPSC Current Affairs Pointers of the past week | January 19 to January 25, 2026
