New Delhi, Nov. 18 -- Emerging markets, including India, are heading into 2026 with steadier growth but rising vulnerability to geopolitical tensions, climate shocks and uneven investment flows, Moody's Ratings said in its emerging markets outlook on Tuesday, warning that the coming year will test the resilience of governments and companies across Asia, Latin America and Africa.

While many developing economies have absorbed the effects of tighter global financial conditions, Moody's Ratings said the next phase of risk will "increasingly be driven by local factors," including political transitions and fiscal constraints to escalating weather-related hazards.

"EM (emerging market) governments are focusing on their domestic priorities and ...