Global analytics and country-risk firm BMI has increased India’s GDP growth forecast for FY2025 to 6.5%. This change reflects growing confidence in the country’s economic fundamentals. The upgrade emphasizes India’s strong domestic momentum, driven by resilient consumption, solid private and public investment, and steady growth in key sectors like manufacturing, construction, and services. Despite global uncertainties, including trade tensions, tariff risks, and geopolitical volatility, BMI observes that India continues to outperform most major economies due to the strength of its internal demand cycle.

The report highlights that India’s household consumption is supported by urban income growth, expanding formal employment, and rising consumer confidence. On the investment side, ongoing government spending on infrastructure, transportation, and renewable energy fuels activity. Private sector capital expenditure is also gradually increasing due to improved balance sheets and stronger credit conditions.

BMI notes that India’s macroeconomic stability, shown by controlled inflation, robust foreign exchange reserves, and a healthy financial system, offers extra protection against global shocks. The upgraded forecast may further enhance investor sentiment, encouraging foreign direct investment and domestic business growth. As global supply chains diversify, India’s manufacturing reforms and digital economy position it as an attractive destination for growth.

With the new 6.5% GDP outlook, the firm expresses optimism about India’s medium-term trajectory, suggesting that the country is well-positioned to maintain steady growth and strengthen its status as one of the world’s most dynamic emerging markets.