India's Business Optimism Index (BOI) was flat at 111.7 in the fourth quarter of 2026, barely changed from 111.8 in the third quarter but 3 per cent lower than in Q4 2025, according to a Dun & Bradstreet report released on Thursday. IANS reported that the index declined year-on-year for the fifth consecutive quarter, indicating continued caution among businesses.

Source: IANS via HiIndia

The report pointed to an uneven outlook, with businesses remaining cautious about domestic demand and profits. Sentiment improved among medium enterprises and global economic confidence edged higher, but confidence remained uneven across business sizes.

111.7Business Optimism Index, Q4 2026
67.2Domestic-order optimism — lowest since Q3 2024
83.3Utilities sector optimism — the highest
74.4Sales optimism

Dun & Bradstreet India Chief Economist Arun Singh said: "India's stable headline business optimism masks a more cautious outlook for demand and profitability. Domestic order and profit optimism have reversed their Q3 gains, suggesting that resilience has yet to translate into a sustained, broad-based improvement in business confidence."

Source: Dun & Bradstreet report via Business Times

Domestic-order optimism fell 4.4 per cent quarter-on-quarter and 14.9 per cent year-on-year to 67.2, its lowest level since Q3 2024. Sales optimism moderated to 74.4, export-order optimism was broadly unchanged at 59.3, profit optimism declined 1 per cent year-on-year to 67.5, and employment optimism stayed broadly stable at 62.7. Utilities recorded the highest optimism at 83.3, followed by food manufacturing at 79.2.

Singh cited September retail inflation at 5.54 per cent — yaani about five and a half per cent — and food inflation at 7.74 per cent as pressures on household purchasing power, while the Reserve Bank of India's 25-basis-point hike to 5.50 per cent and the US Federal Reserve's September increase added financing pressure for firms.