CII’s Business Confidence Index, rose for the third consecutive quarter to 66.5 in Q3FY26, the highest level in five quarters. The improvement is driven by optimism around demand, profitability, and investment conditions, it noted. Domestic demand remains the key driver, with two-thirds of firms reporting higher demand in Q2FY26 and 72 per cent expecting further growth in Q3FY26, aided by GST rate cuts and festive consumption. Investment and hiring intentions remain robust.
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. Amidst this, business confidence among Indian industry is high, as corroborated by the latest Business Outlook Survey of the Confederation of Indian Industry (CII).
“The steady rise in business confidence shows industry’s ability to navigate external headwinds, anchored by resilient domestic demand and a robust reform agenda,” noted Mr Chandrajit Banerjee, Director General, CII. He further added that industry anticipates the growth momentum to strengthen further in the months ahead.”