Overview
- The Business Confidence Index rose to 66.5 in Q3 FY26 from 66.0, marking a third straight quarterly gain to a five‑quarter high based on a December survey of 175+ firms across sectors.
- Two‑thirds of companies reported stronger domestic demand in Q2 FY26 and 72% expect further improvement in Q3, with GST rate cuts from September 22 seen boosting sales by 5–20% by 56.3% of respondents.
- Firms signal robust investment and hiring plans, with improving margins and higher capacity use, pointing to continued private‑sector expansion into early 2026.
- Monetary expectations skew dovish as 69% foresee an RBI repo rate cut by end‑March, with many anticipating an initial move in February and over half of that group expecting more than 25 basis points.
- CII urges Budget steps including a Rs 150‑lakh‑crore NIP 2.0, an India Development and Strategic Fund, and a Rs 1,000‑crore Digitisation Fund, while noting external headwinds and an 8% nominal GDP estimate could limit fiscal space.