Even as geopolitical tensions and economic ripples disrupt global markets, India’s micro, small, and medium enterprises (MSMEs) in manufacturing are holding strong. The PHD Chamber of Commerce and Industry’s fresh SME Market Sentiment Index reveals sustained growth, tempered by calls for robust policy backing to ensure longevity.
This fourth quarterly edition analyzes January-March 2026 data alongside forecasts for the April-June period. Growth endures, albeit at a slightly decelerated rate influenced by external pressures.
Headline figures confirm the sector’s vigor: SME-BAI eased to 56.5 from 58.9 last quarter, maintaining expansion territory. The forward-looking SME-BOI for Q2 2026 came in at 58.7, off from 60.7, but optimism prevails.
New orders surged for 37% of respondents, bolstering production stability. Supply chains and staffing levels held steady, signaling strategic caution.
Business leaders are upbeat for the coming months—37% foresee growth, nearly 50% stability. Notably, 47% are gearing up for increased capex, betting on demand recovery.
Recruitment, though, proceeds gradually, underscoring a focus on balancing costs in choppy waters. As India eyes its MSME engine for economic propulsion, the report urges decisive government action to fortify this vital sector against global storms.
