The CII Business Confidence Index (CIIBCI) rose to 57.4 in July- September 2014, up from 53.7 in April-June quarter and 49.9 in Jan-March quarter this year, according to a survey conducted by CII.
During the same quarter last fiscal, the index had touched an all-time low of 45.7, the release said.
A reading above 50 signals expansion in business confidence.
According to the report, the reading is based on a survey of more than 150 firm of varying sizes, where majority of respondents belonged to large-scale firms, while 12.6 per cent were from medium-scale firms and 37.8 per cent and 5.9 per cent each were from small-scale and micro firms, respectively.
Commenting on the upward march in the value of index, Chandrajit Banerjee, Director General, CII said, "The determination shown by the new government at the Centre to provide an impetus to growth along with reviving the 'feel good' factor has sent the business confidence index soaring for the second quarter in a row."