ASSOCHAM launches Business Confidence Index; data shows confidence steady amid global headwinds
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Industry body ASSOCHAM has launched the ASSOCHAM Business Confidence Index (ABC Index) on a trial basis, with the data showing that business confidence remained steady during April-September 2026-27 despite global headwinds, the West Asia crisis, high energy prices, high inflation and rupee depreciation.
The ABC Index recorded 5.6% year-on-year growth during April-September 2026-27, while it touched an all-time high of 129.74 in April 2026, ASSOCHAM said.
The index stood at 128.25 in September 2026, up 8% from 118.72 in September 2025. It had grown 7.5% in 2024-25 and 9.9% in 2025-26.
The ABC Index is a composite index comprising 20 indicators, including GST collections, passenger vehicle sales, Sensex, India Composite Purchasing Managers’ Index (PMI), exports, Index of Industrial Production (IIP), Index of Core Industries (ICI), Consumer Price Index (CPI), bank credit, digital payments, Wholesale Price Index (WPI), foreign exchange reserves, gross foreign direct investment, exchange rate, repo rate, real GDP growth, unemployment rate, current account deficit, fiscal deficit and index-based feedback on the effects of economic reforms.
The index is based on statistical analysis and assigns weights to all 20 indicators, with the base month set at 100.
Business confidence remains steady
The ABC Index grew 4.8% year-on-year in April 2026, 2.3% in May and 2.1% in June. Growth accelerated to 7.2% in July, 8.8% in August and 8% in September.
The index recorded average year-on-year growth of 5.6% during April-September 2026-27. In comparison, it grew 8.8% in 2024-25 and 10.4% during April-September 2025-26.
ASSOCHAM said the index will progress further with suggestions and inputs from industry and analysts. It will provide a monthly reading on the last working day of October, November and December 2026, while from January 2027, the index will become a fortnightly indicator.
“The ABC Index is a composite index of India’s economic pulse, bringing together 20 key indicators to track whether economic conditions are improving, weakening, or remaining stable,” said Nirmal Kumar Minda, President, ASSOCHAM.
“The Index will give businesses, policymakers and investors a broader view of the evolving economic environment and support more informed decision-making,” he added.
Saurabh Sanyal, Secretary General, ASSOCHAM, said the ABC Index provides a structured assessment of the evolving business and economic environment by bringing together key indicators to capture underlying business momentum and emerging trends.
Dr S. P. Sharma, Chief Economist, ASSOCHAM, said the index provides a consolidated view of economic momentum by integrating movements across key indicators and enabling more effective tracking of changing economic conditions.
Index tracks 20 key indicators of India’s economic pulse
The ABC Index brings together 20 economic and financial indicators, with varying weights assigned to each metric based on its contribution to the overall index.
The ABC Index assigns a 7.87% weight to bank credit, the highest among the 20 indicators, followed by digital payments at 7.68%, index-based feedback on the effects of economic reforms at 7.69%, CPI at 7.03% and exchange rate at 7.20%.
Fiscal deficit has a weight of 6.20%, IIP 6.29%, exports 6.02%, foreign exchange reserves 5.90%, WPI 5.65% and Index of Core Industries 5.41%.
GST collections account for 4.19% of the index, passenger vehicle sales 4.12%, India Composite PMI 2.89%, Sensex 2.78% and gross foreign direct investment 2.52%.
Real GDP growth has a weight of 1.17%, unemployment rate 1.38% and current account deficit 1.52%, while repo rate accounts for 6.50%.