CII's Biz Confidence Index rises to five-quarter high in Q3 FY26

Domestic demand remains Key driver, with two-thirds of cos reporting higher demand in Q2 FY26 & 72% expecting further growth in 03 FY26

- OUR CORRESPONDENT

Rising for the third consecutive quarter, CII’s Business Confidence Index climbed to a five-quarter high of 66.5 in Q3 FY26, driven by optimism around demand, profitability, and investment conditions, the industry lobby said on Sunday.

Domestic demand remains the key driver, with two-thirds of firms reporting higher demand in Q2 FY26 and 72 per cent expecting further growth in Q3 FY26, aided by GST rate cuts and festive consumption, the industry body said in the survey.

CII-Business Confidence Index (BCI) is based on a sample survey of firms covering all industry sectors, including micro, small, medium, and large enterprises, from different regions.

‘The survey also enumerated responses across industry groups, both in the public and private sectors, engaged in the manufacturing and services sectors. It was conducted during the first to third week of December 2025, covering more than 175 firms of varying sizes.

Moreover, investment and hiring intentions remain robust.

Notably, 69 per cent of respondents expect the RBI to cut the repo rate by the end of Q4 FY26 (January-March end).