CII Business Confidence Peaks Amid Economic Stability

The CII Business Confidence Index reached a two-quarter high of 68.2, driven by policy continuity and economic momentum post-elections. The survey reveals optimism in consumption, rural demand, and private investment, despite global challenges like geopolitical tensions and commodity prices. Prospects for private capex and potential RBI rate cuts further boost confidence.

The Confederation of Indian Industry (CII) Business Confidence Index has surged to a two-quarter high of 68.2 for the July-September period, reflecting optimism spurred by policy continuity and economic stability post-Lok Sabha elections.

The 128th round of the CII Business Outlook Survey, conducted in September 2024 with over 200 participants across various sectors, highlights robust economic momentum and growth prospects in India, buoyed by the upcoming festive season despite ongoing global challenges.

Concerns remain over geopolitical tensions, global commodity prices, and slowing external demand, but signs of improved rural demand and private investment are encouraging, with 59% expecting a rise in private capex by the first half of FY25. The potential for RBI rate cuts later in FY25 adds to the optimism.

(With inputs from agencies.)