New Delhi, Jan 5 || As the Indian economy continues to grow over robust policy reforms and strong consumption, Bank of America (BofA) has raised the country’s GDP growth projection to 7.6 per cent for current fiscal (FY26), from its earlier estimate of 7 per cent.
BofA has also upgraded its India GDP estimate for fiscal year 2027 to 6.8 per cent, compared to the previous estimate of 6.5 per cent for FY27.
The global brokerage firm said in its latest note that India's incoming data “warrants a GDP forecast upgrade”, as it indicated broad-based improvements in the nation's economic activity towards the end of 2025.
India’s growth outlook has already improved after the economy recorded a higher-than-expected 8.2 per cent growth in in the second quarter. This has led to an increase in the growth projections for 2025-26. The Reserve Bank of India (RBI) has raised its GDP growth forecast for the economy to 7.3 per cent.
According to the BofA note, policy support is expected to be a big theme going forward, playing a major role in growth improvement.