In a testament to India’s economic fortitude, the MSME sector’s confidence has climbed despite worldwide risks, according to SIDBI’s latest quarterly survey. The MSME Business Confidence Index for Q4 2025 rose year-over-year to 60.8, propelled by favorable domestic macro conditions.
Key gains emerged in working capital and total finance availability, alongside improved sales outlooks and business climates. Strong domestic demand is the cornerstone, helping MSMEs weather external storms.
Exporters are responding enthusiastically to policy boosts. RBI’s Trade Relief has 43% of respondents planning participation, CGSE attracts 46%, and 37% eye a dual approach. These initiatives are critical for sustaining export momentum.
SIDBI’s fifth MSME Outlook Survey delves into operational realities and projections. It positions new labor codes as opportunities for formalization, but flags potential compliance hurdles for 34-36% of firms. Suggestions include precise directives and training programs to facilitate adoption.
Manufacturing shines brightest, with its M-BCI advancing to 64.1 from 62.9. Services and trading softened marginally, yet future expectations remain upbeat: M-BEI at 63.7 for the next quarter and 65.0 annually. Sales optimism is strongest in manufacturing.
Finance access sentiments soared, with manufacturing’s working capital positivity at 46% (from 35%) and overall finance at 47%. Services edged up slightly, trading mixed but buoyed by finance availability.
Quarterly stability reflects manufacturing’s vigor, forecasting sustained growth for this vital sector.