New Delhi: Business confidence in India is rising steadily, supported by resilient domestic demand and optimism about policy reforms ahead of the Union Budget 2026-27, the Confederation of Indian Industry (CII) said on Sunday.
CII’s Business Confidence Index climbed to 66.5 in Q3 FY26, marking the highest level in five quarters and reflecting stronger sentiment on demand, profitability and investment conditions. Around two-thirds of firms reported higher demand in Q2 FY26, while 72% expect demand to grow further in Q3, helped by recent GST rate cuts and festive spending.
CII Director-General Chandrajit Banerjee said the sustained rise in confidence demonstrates industry’s ability to navigate global headwinds anchored by robust domestic consumption and a strong reform agenda, and indicated that companies anticipate further strengthening of growth momentum in coming months.
Looking ahead to the Union Budget, the industry body said it expects the government to continue its reform push to sustain India’s position as the world’s fastest-growing major economy, with a focus on capital expenditure, investment facilitation and competitiveness.
CII’s recommendations to policymakers include maintaining high capital spending through a revitalised Rs 150 lakh crore National Infrastructure Pipeline (NIP 2.0) focused on ready-to-execute, revenue-earning projects to attract private investment and ease dispute resolution, alongside measures to boost innovation and talent development.
On the innovation front, the industry chamber has proposed the establishment of 10 Centres of Advanced Learning and Research in critical areas such as artificial intelligence, robotics, clean energy and biotechnology, coupled with initiatives to attract global talent. It has also called for a Rs 1,000-crore Digitisation Fund aimed at simplifying compliance through digital systems that improve ease of doing business.
CII emphasised that sustained reforms in infrastructure, research and development, digital governance and financial sector policies would help India consolidate its growth trajectory and enhance competitiveness in both domestic and global markets.