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As economic activities pick up and vaccination drive gathers pace the business confidence in the country has improved, showed a survey by National Council of Applied Economic Research (NCAER).

The NCAER Business Confidence index (BCI) rose 29.6 per cent on a q-o-q basis during the third quarter of FY 2020-21.

"The BCI rose further by 29.6 per cent on a q-o-q basis, rising from 65.5 in 2020-21:Q2 to 84.8 in 2020-21:Q3," and NCAER statement said.

However, business sentiments remained worse than they were during the corresponding period in the previous year, it added.

The proportion of respondents expecting that 'overall economic conditions will improve in the next six months' increased by 4.8 percentage points, from 29.8 per cent in 2020-21, Q2 to 34.6 per cent in 2020-21, Q3.

Further the proportion of respondents expecting that the 'financial position of firms will improve in the next six months' increased by 3.1 percentage points, from 27.7 per cent in 2020-21, Q2 to 30.8 per cent in 2020-21, Q3, it said.

The BCI increased for the consumer durables sector by 26.1 per cent on a q-o-q basis in 2020- 21, Q3, for consumer non-durables by 32 per cent, for intermediate goods by 37 per cent, for capital goods by 27 per cent, and for the services sector by 32.5 per cent.