India’s MSMEs are bucking global trends with rising confidence levels, as per the freshly unveiled SIDBI Outlook Survey. The M-BCI for October-December 2025 stands at 60.8, marking a clear improvement over last year, thanks to robust homegrown economic support.
Standouts include sharper access to working capital and finance, plus uplifts in sales and operational environments. This reflects solid demand and operational steadiness amid persistent global pressures.
Export-oriented MSMEs are leveraging RBI’s Trade Relief (43% interest) and CGSE (46%), with 37% combining both. These policies are key to countering international volatilities.
This fifth quarterly edition from SIDBI offers deep insights into sector dynamics. New labor reforms promise structural enhancements and formalization, yet 34-36% foresee rising short-term costs. Respondents advocate for explicit guidelines (16-21%) and training drives (17-19%) for seamless implementation.
Manufacturing drove the surge, its index climbing to 64.1. Trading and services dipped slightly, but the forward-looking M-BEI projects 63.7 soon and 65.0 in 2026. Manufacturing leads in sales expectations.
Working capital positivity jumped to 46% in manufacturing from 35%, total finance to 47%. Services gained modestly, trading weakened on working capital but strengthened overall.
Maintained quarterly confidence, powered by manufacturing, heralds an optimistic outlook for MSMEs.