Close to 45% of the MSMEs believe the fourth quarter of this fiscal as well as the coming fiscal could see robust sales growth, according to the first-ever MSME Outlook Survey by Small Industries Development Bank of India (SIDBI).
The analysis of MSME business sentiment for the October-December 2024 period showed that export optimism has risen from 22% for October-December 2024 to 36% for the same period in 2025. MSME were confident of the future outlook, with 30-40% planning to increase their workforce, said the SIDBI survey.
The MSME Business Expectations Index showed a reading of above 60 for the next four quarters, till December 2025, reflecting greater optimism. "MSMEs are optimistic on sales growth buoyed by positive sentiment on order books, production and rise in selling price," said the survey.
A growing numbers of manufacturing sector respondents, about 46%, also said that they were willing to invest in greener technologies.
"The importance given to this sector by GOI is also evident from the fact that it has been identified as one of the four growth engines of the economy during the recent union budget," said Manoj Mittal, Chairman and Managing Director, SIDBI.
The Centre has approved the Mutual Credit Guarantee Scheme, announced in the Budget 2024-25, to enhance credit access for MSME manufacturing. Under this scheme, loans of up to Rs 100 crore for plant and machinery purchases will now be eligible for 60% guarantee coverage. Banks and lenders will receive a 60% guarantee for MSME loans up to Rs 100 crore, ensuring reduced risk and improved funding availability.
Read More: Budget push for MSMEs would work, but safeguards are key
In the survey, the manufacturing sector MSME said they expect a rise in input costs, but higher volumes and price could mean improved profit margin too, going ahead, said about half of the small and medium businesses.
13% of the surv ey participants were not satisfied with the labour productivity and 17% were dissatisfied with the availability of skilled labour during October-December 2024.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
