New Delhi, Nov 3 (IANS) Amid global economic uncertainty, business confidence in India continues to remain resilient with the Assocham Business Confidence Index (ABC Index) registering a growth of 8.12 per cent to 128.72 in October 2026, compared with 119.05 in the same month of the previous year, it was announced on Tuesday.

The business chamber said that the increase in the confidence index is driven by robust GST collections, strong bank credit growth, rising passenger vehicle sales, sustained PMI expansion, and positive feedback on economic reforms.

Gross GST collections grew by 22.9 per cent year-on-year to Rs 2.31 lakh crore in October 2026, reflecting strong festive-season consumption, higher economic activity, and improved tax compliance.

Bank credit growth stood at 19.9 per cent in September 2026, indicating robust credit demand from industry, MSMEs and retail borrowers. Strong passenger vehicle sales reflect healthy consumer demand, while the Composite PMI at 56.7 signals continued expansion in private-sector business activity.

These indicators reflect resilient domestic demand, improving business sentiment and sustained economic momentum, reinforcing the robust outlook for India's business and economic environment, the statement said.

Going ahead, Assocham has projected the November 2026 index at 128.4, up from 118.56 in November 2025, translating into a year-on-year growth of 8.3 per cent.

The Assocham Business Confidence Index (ABC Index) was first launched on September 30, 2026. The Index provides an overall assessment of the Indian economy by analysing 22 key economic indicators.

Assocham president Nirmal Kumar Minda said, “the latest ABC Index readings reflect the continued resilience of India’s business environment and strong economic growth. We expect the Indian economy to sustain robust GDP growth in the current financial year as well.”

The November 2026 ABC Index forecast of 8.3 per cent year-on-year growth reflects an improvement in business confidence which offers further insight into the trajectory of the business and economic environment, said Saurabh Sanyal, Secretary General, Assocham.

Positive feedback on economic reforms reflects growing business confidence in the government's reform initiatives. GST decriminalisation and enforcement reforms reduce the general penalty from Rs 25,000 to Rs 10,000, raise the prosecution threshold from Rs 1 crore to Rs 5 crore and rationalise inspection procedures. These measures promote trust-based compliance and reduce the burden on businesses, the statement said.

The Jan Vishwas Act reduces compliance burdens through decriminalisation of minor offences. The MSMED (Amendment) Act, 2026 further supports MSME growth by simplifying their classification, facilitating access to finance and strengthening provisions for timely payments, thereby improving ease of doing business, the statement added.

--IANS

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