Bank of America has raised India’s GDP growth forecast, citing strong consumption, policy support, and improving economic indicators. The revision reflects better-than-expected performance in late 2025 and sustained momentum into the next fiscal.

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* Bank of America lifts FY26 GDP growth to 7.6%

* FY27 growth forecast raised to 6.8% from 6.5%

* Upgrade follows broad-based improvement in economic activity

* Q2 growth surprised at 8.2%, beating expectations

* Reserve Bank of India raised its FY26 forecast to 7.3%

* Policy support seen as key driver ahead

* Multiple rate cuts in 2025 aided momentum

* Consumption and spending show clear pickup

* Fuel use, auto sales, credit growth accelerated late 2025

* New GDP and inflation series due next year