India Inc turns more bullish as business confidence soars to 66 in Q2 FY27: CII
New Delhi, Sep 7 (IANS) India’s economic growth momentum is gaining further strength, with business confidence rising sharply as companies anticipate stronger demand, higher capacity utilisation and improved operating conditions in the second quarter of FY27, according to a latest survey by the Confederation of Indian Industry (CII) on Monday.
The CII Business Confidence Index (BCI) surged to 66.0 in Q2 FY27 from 60.8 in Q1 FY27, marking a significant 5.2-point increase and reaching a multi-quarter high.
The findings of the 136th Round of CII’s Quarterly Business Outlook Survey, based on responses from more than 240 companies across sectors, regions and firm sizes, indicate that India Inc is increasingly confident about the durability of the country’s growth trajectory.
The survey comes against the backdrop of stronger-than-expected economic growth. According to the latest estimates from the Ministry of Statistics and Programme Implementation (MoSPI), India’s real GDP expanded 7.8 per cent in the first quarter of FY27, compared with 6.9 per cent in the corresponding quarter of the previous fiscal. Manufacturing growth accelerated to 9.2 per cent, while services growth reached 10 per cent, underscoring the broad-based nature of the expansion.
CII Director General Chandrajit Banerjee said the rise in business confidence reflected the resilience of the Indian economy despite continuing geopolitical uncertainties. He said improving business activity, robust domestic demand and stable macroeconomic indicators were strengthening expectations that government policies would support faster growth in output and new orders.
“Industry sentiment has turned a corner, and this is no coincidence,” Banerjee said, adding that when business confidence, macroeconomic indicators and ground-level economic activity improve together, they point towards a growth cycle that is increasingly broad-based, durable and sustainable.
The improvement in the BCI was led by a sharp rise in expectations about future business conditions. The Expectation Index climbed to 67.7 in Q2 FY27 from 60.6 in the previous quarter, while the Current Situation Index rose more moderately to 62.6 from 61.2. The widening gap between the two indicators suggests that companies expect business conditions in the coming quarter to improve significantly from current levels.
“Indian industry is entering the second half of the year with greater confidence. While external risks require continued attention, the underlying momentum remains encouraging,” Banerjee said.
–IANS
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