India Inc Confidence Jumps in Q2 FY27, CII Survey Shows

CII's Business Confidence Index climbed to 66.0 in April-June from 60.8, as Indian firms expect stronger demand, more hiring and higher output.

Confidence among Indian companies climbed steeply in the April-June quarter of FY27, according to a survey by the Confederation of Indian Industry (CII), with businesses forecasting firmer demand, fuller factories and more hiring even as global risks linger. The CII Business Confidence Index moved up to 66.0 from 60.8 in the preceding three months.

Much of the lift came from how firms view the road ahead. The Expectation Index, which gauges the outlook for the next quarter, leapt to 67.7 from 60.6. The Current Situation Index edged higher to 62.6 from 61.2, a gap showing that hopes for the future are advancing more quickly than judgements of present conditions.

The results draw on the 136th round of CII's Quarterly Business Outlook Survey, which gathered replies from over 240 companies spanning sectors, regions and firm sizes.

Demand and hiring lead the shift

Appetite for goods and services underpins the brighter mood. Roughly 61% of those polled expect demand to strengthen in the quarter, against just 9.6% who see it slipping. The slice anticipating growth above 20% widened to 16%, up from 12.9% three months earlier.

That pull is prompting plans for heavier output. The share of firms expecting capacity utilisation to top 80% in the closing half of 2026 rose to 51.6%, compared with 36.6% for the opening half. CII noted that keeping utilisation elevated for a stretch could draw fresh private investment in the quarters ahead.

Job creation tracks the same direction. Some 53% of respondents said they plan to add staff during the quarter, another marker of quickening activity.

Growth backdrop and remaining risks

The findings land alongside an economy that has outpaced forecasts. Real GDP grew 7.8% in Q1FY27, up from 6.9% a year earlier, MoSPI data showed. Manufacturing advanced 9.2% and services expanded 10%.

"The optimism shown by businesses, as reflected in the BCI, is a clear testament to the inherent resilience of the Indian economy even as the geopolitical uncertainty continues," said Chandrajit Banerjee, Director General of CII. He added that steady activity, sturdy domestic demand and stable macroeconomic readings reinforce the view that government policy will back faster growth in output and orders, opening openings for firms at home and overseas.

Relief also appeared on the cost front. The proportion of companies bracing for higher input costs eased to 61.1%, down from close to two-thirds a quarter before, a shift that could take some pressure off profit margins.

Caution has not vanished, however. Respondents flagged global trade uncertainty as the single largest threat over the next six months, with swings in commodity prices ranked next.

"Industry sentiment has turned a corner, and this is no coincidence," Banerjee said. He argued that when confidence, macroeconomic figures and on-the-ground activity align, they signal a growth cycle that is becoming broader, more durable and more sustainable.

Taken together, the survey depicts firming assurance across corporate India, with solid demand, investment intentions and recruitment plans propping up the outlook even as trade and commodity risks stay in view.

CII Business Confidence Index, India Inc Q2 FY27, Indian economy, domestic demand, capacity utilisation, GDP growth India, Chandrajit Banerjee, corporate hiring plans