India lost its top spot among emerging markets in August 2025. China overtook it due to stronger stock market and currency performance, despite India’s high GDP growth.

BulletsIn

• India ranked second, composite score 57.5
• China first, score 58.4, first top spot in 5 months
• India worst among peers in stock market, currency
• Market capitalization down 2.1% month-on-month
• Rupee depreciated 1.6% vs dollar
• Still, India GDP growth strong at 7.8% in April–June
• Manufacturing PMI high at 59.3, exports up 6.7%
• China gained from stable GDP, currency, import cover
• But China facing deflation, weak demand remains
• Thailand moved to third, exports and stocks strong
• Mint tracker ranks 9 EMs on 7 indicators monthly