India's business confidence indicator showed continued improvement in September 2026, with the newly introduced ASSOCHAM Business Confidence (ABC) Index reaching 128.25, according to data released by the Associated Chambers of Commerce and Industry of India (ASSOCHAM).
The September reading was up from 118.72 in September 2025, representing an 8% year-on-year increase. It also edged higher than the August 2026 reading of 127.69.
Editorial Insight
Key Highlights
Important points readers should notice.
Issue/Event: ASSOCHAM launched the Business Confidence Index on a trial basis.
September Reading: 128.25.
Year-on-Year Change: 8% in September 2026.
April-September Growth: Average 5.6% year-on-year.
Coverage: 20 economic and financial indicators.
The index recorded an average year-on-year improvement of 5.6% during April-September 2026-27. Growth was relatively slower during the first quarter of the financial year before accelerating during July, August and September.
The ABC Index increased 4.8% year-on-year in April, 2.3% in May and 2.1% in June. Growth then accelerated to 7.2% in July, 8.8% in August and 8% in September.
The index is currently being introduced on a trial basis and uses April 2023 as its base period, with a base value of 100.
Editorial Analysis
Why This Matters
The ABC Index provides a consolidated indicator of several parts of the Indian economy rather than measuring a single sector. Its September increase reflects movements across multiple underlying indicators, including credit, payments, industrial activity, inflation, trade and financial conditions. However, the index should not be interpreted as a standalone measure of India's GDP growth or as a direct forecast of future economic performance. It is a composite indicator designed to track broader changes in the business environment. The index's highest recorded level so far was 129.74 in April 2026, meaning the September reading remained relatively close to that level.
