India's Business Confidence inches up to 139.3 in Q4: NCAER

NEW DELHI: India’s Business Confidence Index (BCI) stayed strong in the fourth quarter of FY2024-25, indicating that businesses remain optimistic about the country’s economic trajectory, according to the National Council of Applied Economic Research ( NCAER ).

The index inched up to 139.3, slightly higher than 138.4 in the previous quarter and 138.2 in the same period last year, pointing to steady economic activity, albeit at a moderated pace.
The BCI is based on four key components:

Expectations of overall economic conditions over the next six months

Expectations of a firm’s own financial position over the next six months

Assessment of the current investment climate

Present capacity utilisation being close to or above the optimal level

In Q4, over 50% of respondents remained optimistic across all four indicators, although the responses showed mixed trends when compared to the previous quarter.

The share of firms expecting improvement in overall economic conditions over the next six months dipped slightly from 66.3% in Q3 to 64.7% in Q4.

Expectations about their own financial position remained nearly unchanged, with 59.2% of firms expressing a positive outlook in Q4, compared to 59.3% in Q3.

Despite these minor fluctuations, the sustained level of confidence underscores that businesses continue to perceive the macroeconomic environment as stable and supportive.

Export sentiments decreased to 57.8 per cent, while import expectations rose to 46.1 per cent. Pre-tax profit optimism remained strong at 65.2 per cent, the report said.