New Delhi
India’s economic growth momentum is strengthening, with business confidence rising as companies anticipate stronger demand, higher capacity utilisation and improved operating conditions in the second quarter of FY27, according to the Confederation of Indian Industry (CII).
The CII Business Confidence Index (BCI) rose to 66.0 in Q2 FY27 from 60.8 in Q1 FY27, marking a 5.2-point increase and a multi-quarter high. The 136th Round of CII’s Quarterly Business Outlook Survey drew responses from more than 240 companies across sectors, regions and firm sizes.
The findings indicate India Inc is increasingly confident about the durability of the growth trajectory. The survey follows stronger-than-expected growth, with official estimates showing real GDP expanded 7.8 per cent in Q1 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, pointing to broad-based expansion.
CII Director General Chandrajit Banerjee said rising confidence reflected the resilience of the Indian economy despite continuing geopolitical uncertainties. He cited improving business activity, robust domestic demand and stable macroeconomic indicators as factors supporting expectations of faster growth in output and new orders.
The Expectation Index climbed to 67.7 in Q2 FY27 from 60.6 in the previous quarter, while the Current Situation Index rose to 62.6 from 61.2. The widening gap suggests companies expect conditions in the coming quarter to improve significantly from current levels.
The survey therefore points to strengthening optimism across Indian industry, supported by demand, activity and macroeconomic stability.
