Indian business sentiment improved in the July-September quarter after declining for four consecutive quarters. The Business Confidence Index rose to 107.8 from 99.8 in the previous quarter, according to the latest survey by the National Council of Applied Economic Research (NCAER).
The survey, conducted in September among 502 firms across six cities, found improvement in all four indicators of business confidence. The share of firms expecting overall economic conditions to improve over the next six months rose to 50 per cent from 43 per cent. Expectations of improved financial positions increased to 41 per cent from 37 per cent, while the share viewing the investment climate positively rose to 30 per cent from 26 per cent. Firms expecting capacity utilisation to remain near or above optimal levels increased to 94 per cent from 91 per cent.
NCAER survey indicated a broad-based recovery in sentiment among both micro, small and medium enterprises and large firms. The Business Confidence Index for MSMEs rose from 93 to 100, while that for large firms increased from 111.6 to 120.3. She added that business prospects had improved in both domestic and external markets, while cost sentiments had moderated.
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