Informist New Delhi

Indian businesses are facing higher operational costs, regulatory burdens, and logistical constraints, a survey by the Associated Chambers of Commerce and Industry of India has revealed. Businesses, however, remained cautiously optimistic about the outlook because of new opportunities in manufacturing growth and digital transformation, according to the survey, which had insights from 150 companies across nearly 60 sectors.

"The survey underscores that while businesses are contending with rising operational costs, there exists a strong consensus on the need for regulatory and operational reforms," ASSOCHAM said in the findings of its Indian Economic Confidence Survey 2025. "With targeted reforms and proactive investments, there is significant potential for enhanced competitiveness, improved exports and a more robust growth trajectory in the coming years, especially since the economic fundamentals of the country are strong." 

Survey respondents reported that overall cost of doing business has risen in the face of global uncertainties. As per the survey, 47% of the respondents noted a moderate increase in the cost of doing business, while 37% indicated a significant uptick. Infrastructure cost, skilled labour, and cost of finance were some of the key drivers behind higher costs. Compliance and regulatory complexity also burdened exporters and domestic producers, ASSOCHAM said. 

India's economic growth slowed down in 2024-25 to 6.5% after growing over 9% in two of the three years after the pandemic. For FY26, the RBI expects the GDP growth to remain at 6.5% amidst an uncertain global geopolitical and trade environment.