CII’s Business Confidence Index climbs to five-quarter high of 66.5 in Q3 FY26

The Confederation of Indian Industry (CII) has said that its Business Confidence Index (BCI) climbed to a five-quarter high of 66.5 in Q3 FY26, driven by optimism around demand, profitability, and investment conditions. This is the third consecutive quarter, when index rose. It said domestic demand remains the key driver, with two-thirds of firms reporting higher demand in Q2 FY26 and 72 per cent expecting further growth in Q3 FY26, aided by GST rate cuts and festive consumption. 

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. It was conducted during the first to third week of December 2025, covering more than 175 firms of varying sizes. Moreover, 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).

CII expressed confidence that the reform momentum will continue in the Budget to sustain India's growth. 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.