Business Confidence in India Remains Strong Amid Global Uncertainties, Says Assocham Index

New Delhi, November 3 (Daily Kiran) : India’s business confidence has shown remarkable resilience amid global economic uncertainties, according to the latest report from the industry organization Assocham. The Assocham Business Confidence Index (ABC Index) rose by 8.12% in October 2026, reaching 128.72, compared to 119.05 in October 2025.

The surge in business confidence is attributed to several positive factors, including robust Goods and Services Tax (GST) collections, a significant increase in bank lending, strong sales of passenger vehicles, and a positive response from the industry to economic reforms. In October 2026, the gross GST collection increased by 22.9%, amounting to ₹2.31 lakh crore. This growth reflects strong consumer demand during the festive season, a boost in economic activities, and improved tax compliance.

Additionally, the credit growth in September 2026 stood at 19.9%, indicating strong demand for loans across industries, MSMEs, and the retail sector. The solid sales of passenger vehicles highlight an uptick in consumer demand, while a composite Purchasing Managers’ Index (PMI) of 56.7 indicates ongoing expansion in private sector activities.

According to Assocham, these indicators point to robust domestic demand, an improving business environment, and sustained economic momentum, reinforcing a positive outlook for India’s economic landscape. The organization has also expressed optimistic projections for November 2026, estimating that the ABC Index will remain at 128.4, reflecting an 8.3% increase compared to November 2025’s figure of 118.56.

Notably, the ABC Index was launched on September 30, 2026, analyzing 22 key economic indicators to assess the overall state of the Indian economy. Nirmal Kumar Minda, President of Assocham, emphasized that the latest index figures showcase India’s strong business environment and economic growth. He expressed hope that the Indian economy will maintain a strong GDP growth rate in the current fiscal year.

Saurabh Sanyal, Secretary-General of Assocham, noted that the projected 8.3% increase for November signals an improvement in business confidence, which also provides insight into future economic activities. The report highlighted that the government’s reformative measures have further bolstered industry confidence. Easing provisions related to GST-related criminalization, reducing general penalties from ₹25,000 to ₹10,000, and increasing the prosecution limit from ₹1 crore to ₹5 crore, along with simplifying inspection processes, have promoted compliance-based systems.

Moreover, decriminalizing minor offenses under the Public Trust Act has reduced compliance burdens. The MSME Development (Amendment) Act of 2026 has simplified classifications for MSMEs, improved access to finance, and strengthened timely payment provisions, enhancing ease of doing business in India.