India drops to sixth among emerging markets in December as global headwinds bite

Subscribe to enjoy similar stories. India slipped to the sixth position on Mint’s emerging market tracker in December 2025, as weakness across multiple external indicators dragged its composite score lower despite continued strength in broader economic growth and manufacturing activity. This marked the worst performance since February 2025, when the same indicators emerged as weak spots.

Throughout 2025, external headwinds—and their impact on exports, rupee and stock markets—have been a drag on India's ranking. The country secured the top position in only five months, as opposed to eight in 2024 and nine in 2025. China emerged as the best-performing emerging market for the month, supported by relatively steady export growth, strong import cover and a more stable currency compared with peers.

While manufacturing activity remained mixed, gains in trade and financial indicators helped China move ahead of the pack during the month. China is the only country other than India to secure the top rank more than once. It last topped the list in March 2025.

Thailand and Malaysia secured the second and third spots, respectively, as their currency and stock market performances remained strong. Thailand also gained from strong manufacturing activity, while Malaysia’s decent GDP growth added to its strength. Launched in September 2019, Mint’s Emerging Markets Tracker compares nine major emerging economies using seven high-frequency indicators—real GDP growth, manufacturing PMI, export growth, retail inflation, import cover, exchange rate movement and stock market performance—to track shifts in economic momentum across countries.