Business Confidence Index: How India Inc is coping with the impact of the war in West Asia
India's Business Confidence Index fell to 47.2 in Q1FY27 due to the impact of the war in West Asia, with companies facing supply disruptions and price shocks. The Reserve Bank of India lowered GDP growth projection to 6.9% for FY27 and hiked retail inflation forecast to 4.6%.
India's business confidence has taken a hit due to the war in West Asia, with the Business Confidence Index (BCI) falling to 47.2 in Q1FY27. The BT-C Fore Business Confidence Survey of 500 CEOs and CFOs revealed a bleak outlook for corporate India. The war has caused supply disruptions and price shocks, affecting various sectors, including light industries and micro enterprises. Finance Minister Nirmala Sitharaman noted that the conflict has evolved into a systemic tremor, threatening global energy supplies. The Reserve Bank of India (RBI) Governor Sanjay Malhotra stated that the conflict is likely to impede growth, citing higher input costs and supply-chain disruptions. The RBI lowered GDP growth projection to 6.9% for FY27 and hiked retail inflation forecast to 4.6%.
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