CII Business Confidence Index Rises to Five-Quarter High of 66.5
The CII’s business confidence index or BCI is based on a sample survey of firms covering all industry sectors, including micro, small, medium, and large enterprises, from different regions
New Delhi: Rising for the third consecutive quarter, the business confidence index of leading industry body Confederation of Indian Industry (CII) climbed to a five-quarter high of 66.5 in Q3 FY26, driven by optimism around demand, profitability, and investment conditions, according to the industry lobby survey released on Sunday.
The CII’s business confidence index or BCI is based on a sample survey of firms covering all industry sectors, including micro, small, medium, and large enterprises, from different regions. The survey also enumerated responses across industry groups, both in the public and private sectors, engaged in the manufacturing and services sectors.
The survey was, however, conducted during the first to third week of December 2025, covering more than 175 firms of varying sizes. “Domestic demand remains the key driver, with two-thirds of firms reporting higher demand in Q2 FY26 and 72 percent expecting further growth in Q3 FY26, aided by GST rate cuts and festive consumption,” the industry body said in the survey.
Moreover, the survey showed that investment and hiring intentions remain robust. “Notably, 69 per cent of respondents expect the RBI to cut the repo rate by the end of Q4 FY26 (January-March end). “The reform momentum will continue in the Budget to sustain India's growth,” the CII said.
The survey also revealed a boost to sales from GST cuts effective from September 22, as 56.3 per cent of respondents expect their sales to increase between 5 and 20 per cent in the coming quarters. “Driven by bold reform initiatives, India has firmly established itself as the world's fastest-growing major economy, demonstrating remarkable resilience amid global uncertainty shaped by geopolitical tensions, trade weaponisation, and a slowing world economy,” the CII said.
Commenting on the survey, CII director general Chandrajit Banerjee said that the steady rise in business confidence showed industry’s ability to navigate external headwinds, anchored by resilient domestic demand and a robust reform agenda. “The industry anticipates the growth momentum to strengthen further in the months ahead,” he added.
For the Union Budget for 2026-27, CII has suggested sustaining capital expenditure, wherein a revitalised Rs 150-lakh crore National Infrastructure Pipeline (NIP) 2.0 could be launched. “The focus should be on shovel-ready, revenue-generating projects and streamlined dispute-resolution mechanisms to accelerate infrastructure delivery and crowd-in private investment,” the industry lobby said
