New Delhi, Jan 18 (IANS) Business confidence in India is steadily improving, reflecting strong domestic demand and expectations of continued reforms in the Union Budget 2026–27, according to the latest Business Outlook Survey by the Confederation of Indian Industry (CII) on Sunday.
CII’s Business Confidence Index rose for the third straight quarter to 66.5 in Q3 FY26, marking its highest level in five quarters.
The report showed that companies are optimistic about demand, profitability and investment conditions.
Around two-thirds of firms reported higher demand in Q2 FY26, while 72 per cent expect demand to grow further in Q3 FY26, supported by GST rate cuts and festive season spending.
Hiring and investment plans also remain strong, the industry body said. CII Director General Chandrajit Banerjee said the steady rise in confidence highlights the industry’s ability to handle global challenges, supported by resilient domestic demand and a strong reform agenda.
He added that companies expect growth momentum to strengthen further in the coming months.
Looking ahead to the Union Budget, CII said it expects the government to continue its reform push to sustain India’s position as the world’s fastest-growing major economy.
The industry body has proposed several measures to policymakers to boost long-term growth and competitiveness.
A key recommendation is to continue high capital spending through a revamped National Infrastructure Pipeline (NIP) 2.0 of about Rs 150 lakh crore.
CII said the focus should be on ready-to-execute, revenue-earning projects and faster dispute resolution to attract more private investment into infrastructure.
CII has also suggested setting up an India Development and Strategic Fund to mobilise domestic and foreign capital.
The fund could support domestic priorities such as MSMEs, clean energy and skill development, while also helping Indian companies make strategic overseas investments.
To reduce compliance burden and improve ease of doing business, CII proposed a Rs 1,000-crore Digitisation Fund to strengthen regulatory digitisation, including unified enterprise identity, digital records, and real-time compliance systems.
On innovation, CII recommended creating 10 Centres of Advanced Learning and Research, each with a budget of Rs 1,000 crore, focusing on areas such as artificial intelligence, quantum technology, clean energy and biotechnology.
–IANS
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