Despite global tensions, India’s business sentiment rebounds in Q2 FY27: NCAER
India's Business Confidence Index has risen to 107.8 in the second quarter of this fiscal year. The survey included 502 companies across six major cities, reflecting both large firms and MSMEs. All four key parameters evaluated by the index showed gains when compared to the previous quarter. NCAER indicated that confidence improved in expectations of economic conditions and financial health.
India's business confidence rose in the second quarter of the current fiscal year, according to the latest NCAER Business Expectations Survey. The Business Confidence Index (BCI) reached 107.8, up from 99.8 in the previous quarter, marking the end of a four-quarter period of gradual improvement amid ongoing geopolitical tensions, the survey found.The survey, conducted in September, polled 502 companies of various sizes across six major Indian cities: Delhi NCR in the north, Bengaluru and Chennai in the south, Kolkata in the east, and Mumbai and Pune in the west.
While the BCI showed improvement, it remained below the same quarter of the previous fiscal year (142.6 in 2025-26: Q2).All four key factors considered by the BCI - expectations of better macro-economic conditions, improved firm financial health, favorable investment climate, and optimal capacity utilization at or near optimal levels - recorded gains, contributing to the overall increase in business sentiment.
The proportion of firms anticipating economic conditions to improve over the next six months rose from 43% in Q1 to 50% in Q2. Confidence in firms' financial prospects for the upcoming six months also expanded from 37% to 41%. Similarly, positive views on the current investment climate increased from 26% to 30%. Opinions on optimal capacity utilization grew from 91% to 94%.NCAER's Bornali Bhandari, who led the survey, noted that the data suggest a broad-based recovery in business sentiment across both small and large enterprises.
She added that overall business prospects improved both domestically and internationally, and cost concerns have eased.
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