GDP: Bank of America increases India’s growth to 6.8 percent for FY27 and 7.6 percent for the current fiscal year

GDP: Bank of America (BofA) has increased the country’s GDP growth forecast for the current fiscal year (FY26) to 7.6% from its previous estimate of 7% as the Indian economy continues to expand due to significant policy changes and healthy consumption.

Additionally, BofA has raised its projection of India’s GDP for FY2027 from 6.5% to 6.8%.

In its most recent report, the international brokerage business said that India’s incoming data “warrants a GDP forecast upgrade” since it showed widespread improvements in the country’s economic activity by the end of 2025.

Following the economy’s higher-than-expected 8.2% growth in the second quarter, India’s growth prospects have already strengthened. As a result, growth estimates for 2025–2026 have increased. The Reserve Bank of India (RBI) has increased its prediction for the economy’s GDP growth to 7.3%.

The BofA statement states that policy support is anticipated to be a prominent theme in the future and to play a significant role in improving growth.

A favorable monetary climate has continuously helped the economy, as seen by the Reserve Bank of India’s several rate decreases in 2025 under Governor Sanjay Malhotra. According to the brokerage’s analysis, this has helped the nation maintain momentum in addition to a generally expansionary fiscal position.

Along with stronger investment figures, the BofA paper said that consumption and expenditure had increased.

The decision to raise the near-term prediction was supported by the acceleration of high-frequency indicators including credit growth, vehicle sales, and fuel consumption in November and December.

Both a new inflation series and a new GDP series will be released by the government. In order to facilitate continuity and comparability, the updated national accounts framework will also include back-series data for 2022–2023, 2023–2024, and 2024–2025.

However, with the publication of the updated national accounts series in February of next year, the government does not anticipate a major shift in India’s GDP growth projections.