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ARTHA

Business Confidence

Rises for Second Straight

Quarter in Q2FY26

I ndia’s strong economic momentum, reflected in the Both indices rose for the second straight quarter. The CI
increased to 65.0 from 62.2, while the EI climbed to 66.5 from
7.8 per cent GDP growth in Q1FY26, is mirrored in
rising business sentiment. The CII Business
optimism among Indian businesses, often translating into
Confidence Index (BCI) climbed to 66.0 in Q2FY26 from 65.1. The EI’s consistent lead over the CI indicates structural
64.2 in Q1FY26 and 63.7 in Q4FY25. The second stronger performance in subsequent quarters.
consecutive quarterly gain, amid the global turbulence,
signals resilient domestic demand, easing input costs,
and early signs of investment revival. Trend of CII Business Confidence Index

70
Outlook Strengthens for
Next Quarter 65

The BCI, based on a periodic survey of over 200
companies across sectors and firm sizes, was
conducted between 25 August and 15 September 60 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2025. The index comprises two components: the
Current Situation Index (CI), reflecting assessments for FY22 FY23 FY24 FY25 FY26
July–September 2025, and the Expectation Index (EI),
capturing outlook for October–December 2025. BCI CI EI

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