Bank of America Raises India’s GDP Growth Forecast for 2026 & 2027
New Delhi : Curated by the team of Boldvoices.in, Dated 06/01/2026
Bank of America Raises India’s GDP Growth Forecast
Bank of America has upgraded its outlook for India’s economic growth, reflecting stronger-than-expected performance and improving macro indicators.
For the current financial year (FY26), Bank of America now expects India’s GDP to grow at 7.6%, higher than its earlier estimate of around 7%. For FY27, the growth forecast has been revised upward to 6.8%, from the previous projection of 6.5%.
The upgrade comes after better economic data in the second half of the year, indicating broad-based improvement across sectors. India recorded a robust GDP growth of 8.2% in the second quarter, which exceeded market expectations and strengthened confidence in the economy’s momentum.
High-frequency indicators such as fuel consumption, automobile sales, credit growth, and industrial activity have shown noticeable improvement, especially during November and December. These trends suggest a revival in both consumer demand and investment activity.
Bank of America also pointed out that supportive fiscal and monetary policies are helping sustain growth. Government spending, infrastructure push, and steady credit availability are playing a key role in keeping the economy resilient despite global uncertainties.
In parallel, the Reserve Bank of India has also raised its GDP growth estimate for the current fiscal, reinforcing optimism about India’s medium-term growth prospects.
Looking ahead, India is expected to introduce updated GDP and inflation data under a revised national accounts series. However, policymakers believe the changes are unlikely to materially alter the overall growth outlook.
Big picture takeaway
India is still running strong compared to most global economies. Old-school fundamentals — consumption, government capex, and credit growth — are doing the heavy lifting, while the data backs the narrative. Low drama, solid momentum. That’s the vibe.
Generated with the help of ChatGPT, source Internet.
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