India’s business confidence surges in Q3: NCAER-NSE Survey

The NCAER-NSE Business Expectations Survey for Q3 of FY 2024–25 reveals a notable rise in India's Business Confidence Index (BCI), which climbed to 138.4 from 134.3 in the previous quarter. Key indicators show increased optimism in economic conditions, financial health, and investment climate, signalling a steady recovery and dynamism in business sentiments.
Business confidence index rises again
After a few quarters of mixed signals, Indian businesses are back in the game. The latest NCAER-NSE survey shows an upswing in sentiment, with the Business Confidence Index (BCI) rising to 138.4 in Q3 of FY 2024–25. Compared to the modest 134.3 in Q2, and a notable leap from 127.6 a year ago, the numbers reflect growing optimism. Businesses are not just hopeful—they’re recalibrating for a surge in opportunities.


What’s driving the growth?

• Economic Optimism: 66.3% of firms expect overall economic conditions to improve in the next six months, up from 62.1% in Q2.
• Financial Confidence: 59.3% of firms foresee an improved financial position in the near future.
• Positive Investment Climate: The share of firms rating the investment climate as favourable rose from 49.7% to 51.2%.
• Capacity Utilization: Nearly all firms (97.4%) reported operating at or above optimal levels.

Sectoral insights and workforce dynamics
The report highlights buoyant expectations for domestic production and sales, with 74.3% of firms expecting an increase in production and 75.5% in sales over the next six months. However, the labour market remains mixed. While hiring sentiments for unskilled workers improved, firms showed slightly less enthusiasm for hiring skilled workers.

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