New Delhi, India – Half of Indian businesses have reported that the country’s strong macroeconomic performance has either not translated into improved business performance or has done so only partially, according to the latest Confederation of Indian Industry (CII) Business Outlook Survey. The finding comes at a time when questions have been raised about whether economic growth numbers reflect the situation on the ground. However, the composite business confidence score for July-September 2026 rose to 66 from 60.8 in the first quarter, supported by easing disruptions from the West Asia conflict.
The survey, which covered 238 firms across sectors, found that 13.4% of respondents said on-ground conditions remain subdued despite strong macro data, while 36.6% said they saw some improvement but weaker than indicators suggest. Only 11.3% said their business growth matches or exceeds macro momentum. On the demand side, 29.4% of respondents expect no change in domestic demand in Q2 compared to Q1, while 3.5% expect demand to be more than 20% lower, and 6.1% expect a 5-20% decline.
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However, a sizable number of companies also saw higher demand. “For Q2FY27, 61% of respondents expect demand to increase, while only 9.6% foresee a moderation, a widening of the positive margin over Q1 that signals sustained confidence in end-market conditions,” the survey said. “The share expecting demand growth above 20% rises from 12.9% in Q1FY27 to 16% in Q2FY27, indicating that optimism is not just holding but intensifying at the upper end.” The survey highlights the gap between headline growth figures and the lived experience of many businesses.
