World · India Bureau
Indian business confidence surges to three-year high in Q2FY27
The Confederation of Indian Industry's business confidence index climbed to 66 in the second quarter of FY27, reaching its strongest level in three quarters. The surge reflects optimism over near-term prospects as external headwinds ease and domestic demand remains steady.
LSN India ·
Business sentiment in India has strengthened considerably, with the CII business confidence index rising to 66 in Q2FY27, marking the highest level recorded in the past three quarters. The improvement signals growing optimism among Indian enterprises regarding economic prospects and business conditions ahead.
The uptick in confidence has been primarily driven by expectations for the coming quarter, as companies assess improving conditions on both external and domestic fronts. A moderation in disruptions emanating from West Asia has eased supply chain concerns that had weighed on business sentiment in previous periods, allowing companies to focus on growth opportunities.
Domestic demand has remained resilient despite global uncertainties, providing a stable foundation for business expansion. This combination of factors—reduced geopolitical pressures and sustained consumption at home—has bolstered the outlook among Indian manufacturers and service providers, reflected in the confidence gauge.
The index, which measures business sentiment across India's corporate sector, operates on a scale where readings above 50 indicate optimism. The latest reading of 66 underscores a meaningful shift in business mood, suggesting enterprises are positioning themselves for growth in the quarters ahead.