Why Companies Are Thriving: CII Reports Optimism in Private Investment Opportunities

New Delhi: The Indian economy is looking bright. The Confederation of Indian Industry (CII) recently reported that 75% of companies feel the current environment is great for private investments. Many are excited about hiring in their sectors.

In a survey covering 300 firms, a staggering 70% plan to invest in the financial year 2025-26. This could lead to a 97% rise in private investments, which in turn, may boost hiring.

Chandrajit Banerjee, the CII’s director general, pointed out that despite global challenges, India is standing strong. He noted that most firms reported they would likely increase employment in the next two years. Approximately 79% of respondents mentioned adding staff in the past three years.

The expected increase in direct employment is significant. The manufacturing sector anticipates a 15% boost, while services may see a 22% rise. Indirect employment is also predicted to grow by about 14% across both sectors.

However, filling senior and management roles can take time, with most firms needing one to six months. This highlights a gap in skilled workers at higher levels.

Wage growth is another encouraging sign. Around 40% to 45% of firms noted an increase in average wages for senior and regular positions, ranging from 10% to 20% in the year 2025. This trend seems consistent with the previous year as well.

Overall, with positive signs from private investments and job growth, the economy is projected to maintain a growth rate of around 6.4% to 6.7% this year, with expectations of reaching 7% in 2026. These findings reflect growing confidence in critical areas of the economy, as indicated by various economic indicators.

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