India Leads Q3 FY2025 GDP Growth Among Emerging Economies – Is This the New Economic Order?

The latest GDP figures for Q3 FY2025 are in, and emerging economies are making waves on the global stage. India, with an impressive 6.2% growth, has once again outpaced its regional peers, proving that its economic engine remains as robust as ever. Meanwhile, China’s 5.4% growth signals a steady but slowing pace, raising concerns about long-term sustainability. Other Southeast Asian economies, including Indonesia (5.0%), Philippines (5.2%), and Malaysia (5.0%), are also showing resilience, but can they keep up?

India: The Growth Champion of Q3 FY2025

India’s 6.2% GDP growth is a testament to its strong domestic demand, expanding manufacturing sector, and booming services industry. Despite global economic uncertainty and inflationary pressures, India’s government-led infrastructure push, a thriving tech industry, and a growing middle class have fueled its momentum.

Experts credit policies such as Production-Linked Incentives (PLI) and increased foreign investment in sectors like renewable energy and AI-driven industries as major growth catalysts. However, some skeptics argue that India’s unemployment concerns and rural distress could dampen long-term prospects.

China’s Growth Story: Losing Steam?

At 5.4%, China’s economy continues to expand but at a much slower rate than its historical double-digit growth. The real estate crisis, regulatory crackdowns on tech firms, and declining global trade have placed hurdles in its path. While Beijing is introducing stimulus measures to boost consumer spending and infrastructure, rising debt levels and manufacturing slowdowns remain key worries.

China’s economy is transitioning from an investment-driven model to a consumption-based one, but whether this shift will sustain long-term growth remains to be seen. Could India soon overtake China in growth rates? Some analysts certainly think so.

Southeast Asia: Resilient, But Facing Challenges

The Southeast Asian economies of Indonesia (5.0%), Philippines (5.2%), and Malaysia (5.0%) are keeping pace with global economic trends, driven by strong exports, digital transformation, and growing domestic markets.

• Indonesia: The 5.0% GDP growth is largely backed by commodity exports, infrastructure development, and a booming digital economy. However, high inflation and global demand fluctuations pose risks.
• Philippines: With a 5.2% growth rate, the country is benefiting from remittances, a strong BPO sector, and government spending. However, inflation and currency fluctuations are key concerns.
• Malaysia: At 5.0% growth, Malaysia’s economy is seeing gains from manufacturing, electronics exports, and robust tourism. But rising costs and global uncertainties could impact future performance.

What’s Next for Emerging Markets?

While India is leading the growth charts, China’s slowdown and Southeast Asia’s steady growth indicate a shift in the global economic landscape. The real question is: Can India maintain this lead, or will it face its own set of economic hurdles?

For now, one thing is clear—emerging economies are no longer just following the global narrative. They’re shaping it.