The Business Confidence Index (BCI) slipped to 142.6 in Q2 from 149.4 in Q1, although it remained above the year-ago level of 134.3. The moderation followed three consecutive quarters of improvement and came during a period of domestic reforms including GST rate cuts, whose positive effects are expected to play out over the next two quarters.
The survey, conducted in September across six cities and 484 companies, reflected the immediate impact of the Trump administration’s tariff hikes on Indian exports.
“Macro sentiments were relatively more negatively affected, while the impact was mixed for sentiments at the micro level,” said Prof Bornali Bhandari of NCAER, who led the survey.
The survey noted that 62% of large companies export versus 32% of MSMEs, making them more exposed to global disruptions.
