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Home/Economy/India Business Confidence Index Rises 8% in September, New ASSOCHAM Gauge Tracks Economic Pulse
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Economy

India Business Confidence Index Rises 8% in September, New ASSOCHAM Gauge Tracks Economic Pulse

Nation Path News Desk|1 October 2026|1 min read|529 views
Indian business professionals reviewing economic data representing the September 2026 business confidence index.
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India's new business confidence indicator recorded an 8% year-on-year increase in September 2026. Representative AI Generated Image
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NationPath Brief

Essential context before you continue reading

30 sec overview
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India's newly launched ASSOCHAM Business Confidence Index stood at 128.25 in September 2026, registering 8% year-on-year growth. The index recorded average growth of 5.6% during April-September 2026-27 while tracking 20 indicators across India's wider economic and business environment.

Editorial Brief• Quick summary curated for readers

NationPath Intelligence

The Story Behind The News

Context, analysis and verified insights that explain the story beyond the headline.

Background

Context and information behind the story

The ABC Index has been designed as a composite measure of India's business and economic conditions. It combines 20 indicators covering areas such as consumption, industrial activity, financial markets, inflation, credit, trade and macroeconomic conditions. The indicators include GST collections, passenger vehicle sales, the Sensex, composite PMI, exports, industrial production, core-sector output, consumer and wholesale price inflation, bank credit, digital payments, foreign-exchange reserves and foreign direct investment. It also incorporates the exchange rate, repo rate, real GDP growth, unemployment, current account deficit, fiscal deficit and feedback related to the effects of economic reforms. ASSOCHAM says the index uses statistical analysis and assigns different weights to the indicators.

Key Takeaways

Important points readers should remember

The ASSOCHAM Business Confidence Index reached 128.25 in September 2026.

September's reading was 8% higher than the same month a year earlier.

The index combines 20 indicators to track broader changes in India's business and economic environment.

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.

Future Outlook

What's Next

ASSOCHAM plans to publish the index monthly on the last working day of October, November and December 2026. From January 2027, the organisation has planned to move the ABC Index to a fortnightly release cycle. Future readings will provide additional data points for tracking whether the broader business environment is strengthening, weakening or remaining broadly stable.

FAQ

Frequently Asked Questions

Clear answers to help readers understand the story better.

The ABC Index is a composite indicator designed to track India's wider business and economic environment.
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