Indian Firms Poised for Growth: Over 80% Capacity Utilisation Expected in 2026

A recent CII survey finds that over half of Indian companies anticipate over 80% capacity utilisation in late 2026. This optimism is driven by robust domestic demand and supportive government policies, potentially spurring new investments and expansion in various sectors.

According to the latest Business Outlook Survey by the Confederation of Indian Industry (CII), more than half of Indian companies expect their capacity utilisation to surpass 80% during the latter half of 2026. This promising outlook may catalyze fresh private-sector investments in the ensuing quarters.

The CII's 136th Quarterly Business Outlook Survey, with 51.6% of respondents predicting over 80% capacity utilisation in H2 2026, marks a noticeable increase from 36.6% in H1. This boost is attributed to a stronger demand outlook, leading to a broader improvement among companies.

The upsurge is accompanied by anticipations of heightened domestic demand, with 61% of respondents foreseeing an increase in Q2FY27. CII Director General Chandrajit Banerjee highlighted the steady growth in business activity, thanks to robust domestic demand and stable macroeconomic conditions, supporting expansion and new opportunities for Indian firms.