MSME business confidence improves despite rising input costs, manufacturing sentiment strongest: SIDBI
India's micro, small, and medium enterprises (MSMEs) are exhibiting a strong sense of optimism for business conditions, evidenced by an uptick in the MSME Business Confidence Index. The manufacturing sector specifically showed promising growth, advancing from 59.5 to 61.0 this quarter. Both trading and services sectors are also experiencing a surge in positive sentiment, suggesting a bright…
India's micro, small, and medium enterprises (MSMEs) remain confident about their business prospects despite rising input costs, according to a SIDBI survey. The survey, released in Round 8 (July-September 2026), found that overall business confidence remains robust, with the MSME Business Confidence Index (M-BCI) at 60.4, an improvement from 59.3 in the prior quarter. This upward trend indicates resilience in the MSME sector.
Most MSMEs reported improved business conditions, with 49% of respondents noting positive changes, while 33% indicated a status quo and 18% reported softer conditions. The manufacturing sector showed the strongest sentiment, with the M-BCI reaching 61.0 from 59.5 in the prior quarter. Around 43% of manufacturing enterprises reported positive sales growth, while pessimistic responses dropped to 27%.
The outlook for manufacturing MSMEs remained positive, with the Business Expectations Index at 63.3 for October-December 2026, rising to 64.8 for July-September 2027. Future expectations for the sector remained optimistic, signaling confidence in improved business conditions ahead. The Services MSME Business Confidence Index also improved to 61.3 from 60.4, with future sentiment expected to stay positive.
Overall, the MSME ecosystem in India shows resilience despite challenges, with strong sentiment across all sectors indicating a positive outlook for future business prospects.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
