The survey, conducted with over 200 firms of varying sizes, showed that CII's Business Confidence Index between July and September (Q2 FY25) rose to its highest since March at 68.2.
In the previous quarter, it was 67.3 while in Q2FY24, the figure was 67.1.
It added that 59 per cent of respondents anticipate an increase in private capex during April-September compared to the previous six months.
"Improvement in domestic demand has created a more optimistic business environment, encouraging companies to invest and expand," the survey said.
"A significant portion of respondents also believe that the trajectory of private capex will remain unchanged in the first half. Only a small fraction (6 per cent) expects the level of private capex to deteriorate compared to the second half of FY24," it added.
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