New Delhi: Bank of America (BOFA) has revised upwards its GDP growth forecast for India for the financial year 2025-26 to 7.6 percent, up from its earlier estimate of 7 percent. The revision reflects the country’s strengthening economy supported by robust policy reforms and rising consumption.
For the following year, 2026-27, BOFA has also increased its growth projection to 6.8 percent from the previous 6.5 percent estimate.
In its latest report, the global brokerage firm pointed out that new economic data from India shows improved economic activities by the end of 2025, justifying the upward revision in growth forecasts.
India’s economy recorded a strong 8.2 percent growth in the second quarter, surpassing expectations. This performance has contributed to more optimistic growth estimates for 2025-26.
The Reserve Bank of India (RBI) has also raised its GDP growth forecast to 7.3 percent for the same period.
The report emphasises the significant role government policies will continue to play in supporting India’s economic growth in the coming years.
Under the leadership of RBI Governor Sanjay Malhotra, the central bank cut interest rates multiple times in 2025, which boosted business activities and investments, maintaining the momentum of economic expansion.
BOFA highlighted that consumption and expenditure levels have increased, alongside strengthening investment indicators. Key signals such as fuel consumption, vehicle sales, and rising credit in November and December point to clear economic resilience.
The government is also set to release new GDP and inflation series soon. It will revise data from the financial years 2022-23, 2023-24, and 2024-25 to provide better comparability.
However, the government expects that these new data series will not lead to significant changes in the GDP growth estimates.
My name is Ganpat Singh Choughan. I am an experienced content writer with 7 years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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