SIDBI’s latest MSME Outlook Survey reveals robust business confidence across the sector in Q1 FY26 (April–June 2025). The MSME Business Confidence Index (M‑BCI) jumped to 63.75, up from 60.82 in the previous quarter, signaling strong sentiment across manufacturing and trading MSMEs. The MSME Business Expectations Index (M‑BEI) is equally optimistic, projected at 62.19 for July–September and 67.88 for Q1 FY27, highlighting sustained sector optimism.
More than 50% of manufacturing MSMEs reported sales growth, supported by domestic demand, better financial access, and resilient profit margins. Access to finance rose sharply, with 88% of businesses reporting improved credit availability compared to 79% earlier.
Despite rising input costs, profitability remained stable in most sectors. Capacity utilization also improved, with around 20% of manufacturing and services firms operating above normal levels.
However, exporters reported challenges, with 40% flagging adverse impacts from global tariffs and trade volatility.
Overall, SIDBI’s survey underscores a positive MSME growth outlook, even as exporters face tariff-related uncertainties, while domestic firms continue to benefit from financing and stable demand.
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