India’s business outlook has seen a significant upswing in the first quarter of FY26 (April–June), with the Business Confidence Index (BCI) climbing to 149.4, as per NCAER's latest report.

This growth reflects widespread optimism among Indian firms regarding production, sales, and exports, although job growth sentiment remains unchanged.

Key Points:

• The Business Confidence Index (BCI), compiled by the National Council of Applied Economic Research (NCAER), increased to 149.4 in Q1 FY26 from 139.3 in Q4 FY25, signaling strong economic optimism.
• Over 60% of surveyed firms showed positive expectations across four parameters: overall economic conditions, firm-specific financial outlook, investment climate, and capacity utilization.
• A high percentage of firms expect better performance in Q2 FY26, including 78.7% anticipating higher production, 79.1% expecting domestic sales growth, and 66.5% forecasting an export increase.
• Despite growing confidence in profits and operations, only 32% of firms anticipate increased hiring, showing a stagnant outlook on employment.
• The survey covered 479 firms from six major Indian cities, highlighting robust sentiment across regions and sectors even amid global economic uncertainties.