New Delhi [India], September 7 (ANI): The CII Business Confidence Index (BCI) surged to a multi-quarter high in Q2FY27, underscoring India’s strong growth momentum as Indian industry displays an optimistic outlook amid a gradual easing of disruptions from the West Asia crisis.
The CII BCI showed that the index climbed to 66.0 in the second quarter of FY27, recording a 5.2-point increase from 60.8 in the preceding quarter. The findings stem from the 136th Round of the Confederation of Indian Industry’s (CII) Quarterly Business Outlook Survey, which evaluated responses from over 240 companies across various sectors, regions, and firm sizes.
The survey results aligned with recent national accounts data released by the Ministry of Statistics and Programme Implementation (MoSPI). Official estimates showed real gross domestic product (GDP) expanded by 7.8 per cent in the first quarter of the current fiscal, up from 6.9 per cent in the corresponding period of the previous year. During Q1FY27, manufacturing output expanded by 9.2 per cent against 8.3 per cent a year earlier, while services recorded a 10 per cent expansion compared with 8.0 per cent previously.
“The optimism shown by businesses, as reflected in the BCI, is a clear testament to the inherent resilience of the Indian economy even as the geopolitical uncertainty continues,” stated Chandrajit Banerjee, Director General, CII.
“The steady improvement in business activity, backed by robust domestic demand and stable macroeconomic indicators, reinforces the perception that the government’s facilitative policies will support a faster expansion in output and new orders, creating fresh opportunities for firms in India and abroad,” he added.
Both constituents of the metric registered increased, led by the Expectation Index (EI), which advanced to 67.7 from 60.6 in Q1FY27. The Current Situation Index (CSI) recorded a modest gain, moving to 62.6 from 61.2.
“Industry sentiment has turned a corner, and this is no coincidence,” remarked Banerjee.
“When business confidence, macroeconomic indicators and ground-level activity move in tandem, they point to a growth cycle that is increasingly broad-based, durable and sustainable,” he noted.
On order books, 61 per cent of respondents anticipate a rise in domestic demand during Q2FY27, while 9.6 per cent foresee a moderation. The proportion of enterprises projecting demand growth above 20 per cent rose to 16 per cent from 12.9 per cent in the prior quarter.
Capacity utilisation expectations indicated expansion, with 51.6 per cent of companies projecting operational levels above 80 per cent in the second half of 2026, compared to 36.6 per cent in the first half. Concurrently, 53 per cent of surveyed firms plan to expand their workforce during the quarter.
Input price pressures showed signs of moderation. The share of respondents expecting input cost increases eased to 61.1 per cent from nearly two-thirds in Q1FY27. However, firms flagged global trade uncertainty as the primary operational risk over the next six months, followed by volatility in commodity prices.
“Indian industry is entering the second half of the year with greater confidence,” added Banerjee. “While external risks require continued attention, the underlying momentum remains encouraging.” (ANI)
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