Business Confidence Hits Five-Quarter High as Domestic Demand Stays Strong: CII

Business confidence in India is rising. Domestic Demand is strong. As a result, the government is likely to continue with the proposed reforms in the 2026-27 Union Budget. The Confederation of Indian Industry (CII) stated that, according to a survey, the CII Business Confidence Index has increased for the third successive quarter to 66.5 in the October-December period, which is the highest in the past five quarters. 72 percent of firms believe that the December quarter will witness further expansion because of the reduction in GST rates and festive purchases.

Domestic demand has been the main catalyst for the sector, as stated in the survey by the industry association. Two-thirds of the firms reported an increase in demand in the September quarter. The CII Business Confidence Index (BCI) is based on a sample survey of firms and covers all industry segments, including micro, small, medium, and large-scale industries. The survey also includes responses from industry groups in both the public and private sectors, across the manufacturing and services sectors. The survey was conducted between the first and third weeks of December 2025 and covered more than 175 companies of various sizes.

According to the survey, investment and hiring intentions remain strong. 69 percent expect the RBI to cut the repo rate by the end of January-March. The CII expressed confidence that the momentum of budget reforms will continue to sustain India's growth. The survey also revealed that the GST reduction, effective September 22nd, has boosted sales. 56.3 percent expect their sales to increase by 5 to 20 percent in the coming quarters.