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NCAER’s Business Confidence Index Rises to 149.4 in Q1 FY26 from 139.3 in Q4 FY25.

Economy Business | Dated: 07 Aug 2025

In August 2025, the National Council of Applied Economic Research (NCAER) released the results of its Business Expectations Survey, conducted in June 2025, covering 479 companies across six major Indian cities. The survey revealed that India’s Business Confidence Index (BCI) surged to 149.4 in Q1 (April–June) of the Financial Year 2025-26 (FY26), compared to 139.3 in Q4 of FY25.

🎯 Key Highlights:

  • - The survey highlighted that the BCI growth reflects optimism in the corporate sector regarding the improvement of overall economic conditions, better financial positions of firms, and a favourable investment climate.
  • - According to NCAER, the index is based on four key components: improvement in overall economic conditions, improvement in the financial position of firms, a positive assessment of the investment climate, and high or optimal capacity utilisation.
  • - The share of positive responses for all four components remained above 60%, indicating strong business sentiment in the Indian economy during the survey period.

💡 Other Important Facts:

  • (i) The previous BCI value was recorded at 139.3 in the Q4 of FY25, which was comparatively lower, showing that businesses had a more cautious outlook in the earlier quarter.
  • (ii) The Business Expectations Survey, initiated by NCAER, has been conducted quarterly since 1991 and serves as one of the most credible measures of business sentiment in India.
  • (iii) The Q1 FY26 survey result underscores the confidence of businesses in navigating challenges such as raw material costs, inflation, and demand fluctuations while maintaining optimism for growth in the coming quarters.

📚 Test Your Knowledge:

Recently, the Business Confidence Index (BCI) of the National Council of Applied Economic Research (NCAER) rose to what value in Q1 FY26?

Correct Answer: 149.4

🚀 Quick Recap: