New Delhi | January 19, 2026
India’s business confidence continued its upward trajectory in the October–December 2025 quarter, with the CII Business Confidence Index (BCI) rising to 66.5, marking the highest reading in five quarters, according to a new survey by the Confederation of Indian Industry (CII). This is the third consecutive quarter of growth in business sentiment.
The survey highlighted that 72% of companies expect further improvement in the December quarter, driven by the recent GST rate reductions and robust festive-season consumption.
Strong Domestic Demand Driving Optimism
CII noted that domestic demand remains the primary engine of growth. Nearly two-thirds of surveyed companies reported higher demand during the September quarter.
The CII-BCI survey includes responses from micro, small, medium, and large enterprises across manufacturing and services, covering both public and private sector firms. Conducted from the first to the third week of December 2025, the survey captured inputs from more than 175 companies of varying sizes.
Investment and Hiring Intentions Remain Strong
The survey indicates that both investment and hiring intentions are holding firm across sectors. Additionally, 69% of respondents expect the RBI to consider a repo rate cut by the end of the January–March quarter, reflecting growing confidence in monetary policy support.
CII expressed optimism that continued reforms in the 2026–27 Union Budget will help sustain India’s growth momentum.
GST Cuts Boosting Sales
One notable finding is that the GST reduction effective September 22 has positively impacted sales volume.
Around 56.3% of firms expect their sales to increase by 5–20% in the coming quarters.
India Retains Position as Fastest-Growing Major Economy
Despite global geopolitical tensions, trade disruptions, and slowing international markets, India has sustained its position as the world’s fastest-growing major economy, supported by a strong reform agenda and resilient domestic demand.
According to CII, rising business confidence underlines the industry’s ability to navigate global challenges effectively.
Recommendations for Union Budget 2026–27
For the upcoming 2026–27 Union Budget, CII recommended:
-
Sustaining high capital expenditure
-
Launching a revitalized National Infrastructure Pipeline (NIP 2.0) worth ₹150 lakh crore
-
Prioritizing projects that can be immediately executed and generate revenue
-
Streamlining dispute resolution mechanisms to promote private investment and accelerate infrastructure development
CII stated that sustaining capital spending and enabling private participation will be crucial for driving long-term economic growth.
