According to a Thomson Reuters/INSEAD survey, Indian companies were more positive in Q3 than they were in the previous quarter, reports said.
The fact that the government stepped up on reforms recently by announcing a diesel price hike and permitting FDI in various sectors may have lifted sentiment.
The Thomson Reuters/INSEAD Asia Business Sentiment Index fell to 62 in the third quarter from 69 in the second quarter of 2012, having peaked at 80 in the first quarter of 2011. A reading above 50 indicates an overall positive outlook.
The index surveyed 200 of the Asia-Pacific's top companies in 11 economies.
Sectors focused on exports such as autos, technology and shipping were the least optimistic in the survey whereas those exposed to domestic growth were much more sanguine.
Indonesia and the Philippines had the highest score in the survey of 100, followed by Malaysia and Singapore. India was at 80.
Meanwhile, China was at its lowest at 50, since the survey began in 2009.
The survey showed sentiment in Asia's property sector improved significantly, with five of 10 companies surveyed responding with a positive view on their outlook, while the others were neutral. Developers in Singapore and the Philippines were the most optimistic.
Sentiment among Australian companies rose to 50 from 42 with most respondents reporting that new orders were steady or higher.
Japanese respondents were the least upbeat since the fourth quarter of last year. Seventeen companies reported a neutral outlook, two were negative and one positive.
The prime concern cited by 54 of the 97 respondents in the survey was global economic uncertainty, followed by 15 companies citing "other" risks that included domestic uncertainty and oil prices. Eight companies said rising costs were the key risk.