Business confidence in India is on the rise, driven by robust domestic demand and anticipated reforms in the upcoming Union Budget 2026–27, as per the latest Business Outlook Survey by the Confederation of Indian Industry (CII). The CII’s Business Confidence Index climbed to 66.5 in Q3 FY26, the highest level in five quarters, indicating a positive outlook among companies.
The survey revealed that firms are optimistic about demand, profitability, and investment prospects. Approximately two-thirds of companies experienced increased demand in Q2 FY26, with 72% anticipating further growth in demand in Q3 FY26, aided by GST rate reductions and festive season expenditures.
According to the industry body, hiring and investment intentions remain robust. CII Director General Chandrajit Banerjee emphasized that the escalating confidence underscores the industry’s resilience in the face of global challenges, supported by strong domestic demand and a proactive reform agenda. Companies are optimistic about the strengthening growth momentum in the upcoming months.
Looking forward to the Union Budget, CII anticipates the government’s commitment to sustaining India’s status as the world’s fastest-growing major economy through continued reform initiatives. The industry body has put forth various recommendations to policymakers to enhance long-term growth and competitiveness, including advocating for substantial capital expenditure through a revamped National Infrastructure Pipeline (NIP) 2.0 worth around Rs 150 lakh crore.
CII has proposed focusing on executable, revenue-generating projects and expedited dispute resolution to attract more private investments in infrastructure. Additionally, the establishment of an India Development and Strategic Fund has been suggested to mobilize both domestic and foreign capital, supporting priorities like MSMEs, clean energy, skill development, and strategic overseas investments by Indian firms. To streamline compliance processes and enhance the ease of doing business, CII has recommended a Rs 1,000-crore Digitisation Fund to bolster regulatory digitization efforts, encompassing unified enterprise identity, digital records, and real-time compliance systems. In the realm of innovation, CII has advised the creation of 10 Centers of Advanced Learning and Research, each allocated a budget of Rs 1,000 crore, focusing on key areas such as artificial intelligence, quantum technology, clean energy, and biotechnology.
