Indian businesses are entering the October-December quarter of FY27 with improving confidence but limited appetite for fresh hiring and investment. Expectations of stronger festive-season demand have lifted sentiment, yet economic uncertainties continue to weigh on corporate decisions.
The BT-C Fore Business Confidence Index (BCI) climbed to 48.2 out of 100 for Q3 FY27, up from 44.6 in the previous quarter. However, the index remained below the 50-point mark for the third consecutive quarter, indicating that business sentiment is still subdued despite the improvement.
Several risks are keeping companies cautious. Renewed conflict in West Asia, crude oil prices above $100 per barrel, concerns over rural incomes following deficient rainfall, and inflationary pressures have created uncertainty. The possibility of additional US tariffs on countries purchasing Russian crude has also emerged as a concern for Indian businesses.
The cautious outlook is reflected in employment and investment plans. Among 500 chief executive officers and chief financial officers surveyed, only 11% planned to hire additional workers for the festive season. Meanwhile, 14% reported plans to reduce their workforce, while 52% had no hiring plans. Investment intentions were similarly restrained, with just 6% planning facility expansion or higher capital expenditure.
Pricing decisions also reveal mounting cost pressures. Around 22% of surveyed companies had already raised prices, while another 25% were considering increases. The remaining businesses had yet to decide whether to pass higher costs on to customers.
The survey was conducted between September 9 and 18, 2026, as the festive season began. Although companies anticipate stronger sales opportunities during this period, the latest findings suggest that optimism has not yet translated into a broad-based willingness to expand operations or increase spending.
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