Economic Sentiment on the Rise

The Business Confidence Index (BCI) has shown a significant uptick, reaching 138.4 in the third quarter of 2024-25, up from 134.3 in the previous quarter, as per the latest NCAER-BSE Business Expectations Survey. This marks a notable improvement from the 127.6 recorded in the same quarter of the previous year.

Key Drivers of Optimism

The survey highlights four pivotal factors contributing to this positive shift: anticipation of improved economic conditions, better financial standings for firms, a favorable investment climate, and optimal capacity utilization levels. Notably, over 66% of companies expect economic conditions to improve, and nearly 60% foresee better financial positions in the coming months.

Investment and Production Outlook

Positive perceptions of the investment climate have risen to 51.2%, with a vast majority of firms reporting optimal or near-optimal capacity utilization. Furthermore, expectations for increased domestic production and sales are high, with 74.3% and 75.5% of firms anticipating growth in these areas, respectively.

Employment and Wage Expectations

The employment landscape presents a mixed picture, with a stronger inclination towards hiring unskilled workers and a slight decline in skilled worker recruitment expectations. However, wage increases are anticipated for both categories, signaling a robust labor market.

Survey Methodology

Conducted in December 2024, the survey encompassed 496 companies across six major cities, offering a comprehensive view of the country's economic sentiment.