The Business Confidence Index (BCI) surged to 138.4 in the third quarter of 2024-25, up from 134.3 in Q2, according to the NCAER-BSE Business Expectations Survey. Comparatively, the BCI stood at 127.6 during the same period in 2023-24.
The BCI assessment considers four main factors: expectations for economic improvement within six months, projected financial growth of firms, perceptions of the current investment environment, and whether capacity utilization is near or above optimal levels. All four indicators showed stronger sentiment in Q3 compared to Q2, with positive responses remaining above 50%, signaling sustained growth momentum.
Notably, the proportion of firms foreseeing better economic conditions rose to 66.3% in Q3, up from 62.1% in Q2. Similarly, 59.3% of companies anticipated improved financial positions, a slight increase from 58% in the previous quarter. Positive views on the investment climate climbed to 51.2% in Q3, compared to 49.7% in Q2.
Capacity utilization also improved, with 97.4% of businesses operating at or near optimal levels, up from 96.3% in Q2. Expectations for higher domestic production reached 74.3%, while 75.5% predicted increased sales. The export outlook remained optimistic.
The survey also highlighted strengthening domestic demand, with better sentiments around raw material imports. While hiring for unskilled workers rose, recruitment plans for skilled workers slightly dipped. However, more firms anticipated wage increases across all job levels.
Conducted in December 2024, the survey included 496 firms from six cities across all regions of India.
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