New Delhi, Jan 18 (NationPress) Business confidence in India is on a consistent upswing, driven by robust domestic demand and the anticipation of ongoing reforms in the Union Budget for 2026–27, as highlighted in the recent Business Outlook Survey conducted by the Confederation of Indian Industry (CII) on Sunday.

The CII Business Confidence Index has increased for the third consecutive quarter, reaching 66.5 in the third quarter of FY26, representing its most elevated position in five quarters.

The findings suggest that companies harbor optimism regarding demand, profitability, and investment landscapes.

Approximately two-thirds of businesses observed heightened demand in Q2 FY26, while 72% foresee further growth in demand during Q3 FY26, bolstered by GST rate reductions and increased spending during the festive season.

Plans for hiring and investments continue to exhibit strength, according to the industry body. CII Director General Chandrajit Banerjee remarked that the consistent rise in confidence underscores the industry's capacity to navigate global challenges, underpinned by resilient domestic demand and a robust reform agenda.

He further noted that companies anticipate a continuation of this growth momentum in the months ahead.

As the Union Budget approaches, CII has expressed expectations for the government to persist in its reform initiatives to maintain India's status as the world's fastest-growing major economy.

The industry organization has recommended various measures for policymakers to enhance long-term growth and competitiveness.

A primary recommendation is to sustain substantial capital expenditure through an enhanced National Infrastructure Pipeline (NIP) 2.0, estimated at around Rs 150 lakh crore.

CII emphasized the need for a focus on ready-to-implement, revenue-generating projects and expedited dispute resolution to attract increased private investment in infrastructure.

Moreover, CII has proposed the establishment of an India Development and Strategic Fund to mobilize both domestic and foreign capital.

This fund could facilitate domestic priorities such as MSMEs, clean energy, and skill development, while also enabling Indian companies to pursue strategic investments abroad.

To alleviate compliance burdens and enhance the ease of doing business, CII has suggested a Rs 1,000-crore Digitisation Fund aimed at fortifying regulatory digitization, including a unified enterprise identity, digital records, and real-time compliance systems.

On the innovation front, CII has recommended establishing 10 Centres of Advanced Learning and Research, each with a budget of Rs 1,000 crore, concentrating on areas such as artificial intelligence, quantum technology, clean energy, and biotechnology.