India’s business confidence improved in July-September 2026 after four quarterly declines, lifting the National Council of Applied Economic Research’s (NCAER) index to 107.8 while leaving it below its year-earlier level.
The index had stood at 142.6 in July-September 2025, then declined to 133.8 in October-December and 107.5 in January-March 2026 before reaching 99.8 in April-June. The latest reading was eight points above the prior quarter but still well below the year-earlier mark.
The September survey showed improvement in each measure used for the index. The share of businesses expecting economic conditions to improve over the next six months rose to 50% from 43%; those expecting their own finances to improve climbed to 41% from 37%. Positive assessments of the current investment climate reached 30%, up from 26%, and the share reporting capacity use close to or above optimal levels increased to 94% from 91%.
The gains included firms of different sizes. The confidence reading for micro, small and medium enterprises (MSMEs) rose to 100 from 93, while the index for large companies increased to 120.3 from 111.6. NCAER Professor Bornali Bhandari, who led the survey, described the change as “a broad-based recovery in sentiments” across both groups.
NCAER conducted the survey in September, collecting responses from 502 firms across Delhi NCR, Bengaluru, Chennai, Kolkata, Mumbai and Pune. Its index combines companies’ expectations for the economy and their own finances during the next six months with assessments of the investment climate and capacity utilization. NCAER also said business prospects improved at home and abroad, while cost sentiment moderated.
