India recorded the highest year-on-year growth in business investment confidence among 32 economies surveyed in Q3 2025, according to the latest D&B Global Business Investment Confidence Index released by Dun & Bradstreet (D&B), a leading data and analytics firm.
The report highlights a robust 12.6% year-on-year increase in India’s investment confidence, even as the country saw a slight quarter-on-quarter dip of 1.4%.
Global Investment Sentiment Weakens for Third Straight Quarter
D&B reported that the Global Business Investment Confidence Index fell 13.1% quarter-on-quarter for Q3 2025, marking the third consecutive quarter of decline.
The downturn is widespread, as all five sub-indices registered sharp drops. This contrasts with Q2 2025, when only capital expenditure and workforce size expectations had declined.
According to the report, 46.8% of businesses identified supply chain stability as a crucial factor influencing investment decisions in Q3.
In contrast, tariff uncertainty and domestic interest rates ranked lowest in importance.
The findings correspond with the Global Supply Chain Continuity Index, which dropped to 99.9, the lowest among all measured indices this quarter.
The report revealed that investment confidence fell more in advanced economies than in emerging ones.
The United States, which holds the greatest weight in the index, saw a sharp 16.7% quarter-on-quarter fall.
Other major declines in advanced economies came from France, Japan, Germany, and Spain, erasing the gains seen in Q2.
Among emerging markets, the Russian Federation recorded the largest drop at -26.1%, followed by Brazil (-23.9%) and South Africa (-20.7%).
Brazil’s Central Bank raised the Selic rate by 425 basis points since last year, severely impacting capital expenditure planning.
South Africa’s heavy exposure to US tariffs, especially in the automotive export sector, further hurt confidence.
Globally, the manufacturing sector experienced a sharper decline (-17.2%) in investment confidence compared to the services sector (-10.8%).
The worst-hit manufacturing segments included capital goods (-33.1%), food (-26.9%), and automotives (-26.4%).
However, the chemicals manufacturing sector showed relative resilience, with the smallest drop of -14.8%, possibly due to exemptions in recent US tariffs on pharmaceutical goods.
Despite the broader decline, businesses reported a marginal improvement in capacity utilisation for Q3 2025.
The manufacturing sector saw usage rise to 69.3%, while the services sector reported 68.9%—both marking the first quarter-on-quarter increase since Q1 2024.
However, these levels remain below the 2024 averages of 74.1% for manufacturing and 73.9% for services.
India Emerges as Global Bright Spot
While global confidence continues to falter, India stands out with its strong year-on-year growth in business investment sentiment.
The country’s resilience underscores its growing appeal as an investment destination, even amid global economic uncertainties.
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