Archive · 5 Dec 2025
Indian Businesses Curb Expansion Amid Economic Uncertainty
Indian businesses are becoming more careful about spending money and expanding because of worries about the global economy.
They are expecting it to be harder to get loans and more expensive to borrow money.
This is making them slow down hiring and put off big investments.
However, there are still some good things happening, like big investments in technology and government reforms that could help in the long run.
Small and medium-sized businesses are feeling this the most, with a big drop in their confidence about investing and getting money for their businesses.
Indian businesses are adopting a cautious stance on investment and expansion due to global uncertainty and tighter liquidity.
The Financial Confidence Index (FCI) declined by 5.4% QoQ, and the Investment Confidence Index (ICI) dropped by 8% QoQ.
Bank credit growth eased to 10.4% YoY in September 2025, with expectations of improved financing conditions in the coming quarters.
Large investments in AI infrastructure, totaling USD 18bn, indicate medium-term confidence in India's digital capacity.
Businesses plan to slow hiring, tighten working capital, and defer long-term investments in Q4 2025.
- Who
- Indian businesses, particularly medium-sized and small businesses
- What
- A decline in financial and investment confidence, leading to cautious expansion and investment strategies
- When
- Q4 2025, with data from September 2025
- Where
- India
- Why
- Due to global uncertainty, tighter liquidity, higher borrowing costs, and reduced risk appetite
- Financial Confidence Index (FCI) Decline
- 5.4% QoQ
- Investment Confidence Index (ICI) Decline
- 8% QoQ
- Bank Credit Growth (September 2025)
- 10.4% YoY
- AI Infrastructure Investments
- USD 18bn
- Global FCI Decline
- 2% QoQ
- Global ICI Decline
- 3% QoQ
- Small Businesses' Long-term Funds Optimism Decline
- 17% QoQ
- Medium-sized Businesses' ICI Decline
- 24% QoQ