Latest news with #SIDBI
Entrepreneur
a day ago
- Business
- Entrepreneur
SIDBI's Latest MSME Outlook Survey Reflects Growing Confidence and Resilience in Q1 FY2026
More than half of the MSMEs in manufacturing and trading reported sales growth during the quarter, while 42 per cent of services-sector MSMEs saw an uptick in sales and nearly half reported stable figures You're reading Entrepreneur India, an international franchise of Entrepreneur Media. The Small Industries Development Bank of India (SIDBI) has released the third edition of its quarterly MSME Outlook Survey, covering the April–June 2025 period (Q1 FY2026). The findings indicate steady growth in business sentiment and expectations across India's Micro, Small, and Medium Enterprises (MSMEs), with improvement noted across several operational indicators such as sales, profitability, skilled labour availability, and access to finance. The M-BCI for Q1 FY2026 rose to 63.75, up from 60.82 in the previous quarter, suggesting continued momentum in overall business conditions. The M-BEI, which reflects future expectations, stood at 62.19 for the next quarter and is projected to climb to 67.88 for the same quarter next year. These indices (on a scale of 0–100, with above 50 indicating positive sentiment) reflect sustained optimism, particularly within the trading and services sectors. While there is a slight dip projected for Q2 FY2026, attributed to broader global uncertainties, long-term expectations remain strong. Sectoral trends Sales performance remained solid. More than half of the MSMEs in manufacturing and trading reported sales growth during the quarter, while 42 per cent of services-sector MSMEs saw an uptick in sales and nearly half reported stable figures. Looking ahead, 60 per cent of businesses across sectors expect further growth in the next year. Profitability also held up despite rising input costs. Margins improved across the board, particularly in the services and trading sectors, which anticipate slightly steeper cost increases but remain confident in maintaining profitability. One of the notable trends this quarter was an improvement in skilled labour availability. Around one-fourth of MSMEs reported better access to skilled workers, a concern that has lingered in previous quarters. Expectations point toward further improvements in the coming year. Capacity utilisation rose across manufacturing and services, with nearly 20 per cent of respondents operating above normal capacity levels. Forward-looking estimates suggest this will rise further, with 29 per cent of MSMEs expecting increased utilisation over the next 12 months. Financing conditions also showed improvement. The percentage of MSMEs confirming sufficient access to finance increased to 88 per cent in this round, up from 79 per cent previously. The increase was particularly significant in the trading sector. As sales and capacity expand, the data points to a larger opportunity for formal credit to support business needs. Meanwhile, concerns about the high cost of borrowing persist, though the pressure appears to be easing. Respondents reported a slowdown in the pace of finance cost increases, aligning with the Reserve Bank of India's recent 100 basis point repo rate cut since February 2025. Transmission of lower rates is underway, potentially offering some relief to MSMEs in the coming quarters. On the other hand, the ease of doing business has improved for nearly 50 per cent of the surveyed MSMEs. Key improvements were reported in regulatory areas like return filing and compliance. Looking ahead, over 60 per cent of respondents expect further progress on this front in the next year.
Economic Times
a day ago
- Business
- Economic Times
Over 50% of manufacturing MSMEs report sales growth in Q1FY26, but exporters affected by tariffs: SIDBI Survey
More than half of the manufacturing and trading Micro, Small and Medium Enterprises (MSMEs) in India have reported an increase in sales during the first quarter of the current financial year, however exporters felt the pinch of tariffs, noted the latest MSME Outlook Survey (MOS) conducted by the Small Industries Development Bank of India (SIDBI).The third round of the MSME Outlook Survey, covering the period April to June 2025, found that 42 per cent of MSMEs in the services sector also witnessed sales growth, while 48 per cent reported stable report stated, "Over half of manufacturing and trading MSMEs reported sales growth in Q1FY26".On a year-on-year basis, MSMEs across all sectors said they had seen sales growth. Around 60 per cent of the participants expect further growth in sales in the same quarter a year the report also highlighted some concerns. Nearly 40 per cent of MSME exporters said they were directly or indirectly affected by ongoing tariff-related issues, reflecting the impact of global trade uncertainties on Indian businesses. Despite these challenges, the overall mood among MSMEs remains positive. The Composite MSME Business Expectation Index (M-BEI) for the next quarter stood at 62.19, and for the quarter a year ahead, it stood at 67.88. These figures indicate a fairly optimistic business outlook for the the sectoral level, MSMEs in the trading and services sectors showed stronger optimism. The M-BEI for Q1FY27, as compared to Q1FY26, was recorded at 68.32 for trading and 68.24 for there is a moderate dip in the expectation indices across all sectors for the next quarter (Q2FY26), suggesting some near-term uncertainty due to the evolving global business environment. The SIDBI survey tracks business sentiments and short-term expectations of MSMEs in India. It also helps in filling critical data gaps in the sector by computing the MSME Business Confidence Index (M-BCI), which measures sentiment for the current quarter (Q1FY26 vs Q4FY25), and the MSME Business Expectations Index (M-BEI), which measures expectations for future quarters. The indices are based on six key parameters: sales, profit margins, availability of skilled labour, access to working capital finance, access to overall finance, and the overall business situation.
Time of India
2 days ago
- Business
- Time of India
Over 50% of manufacturing MSMEs report sales growth in Q1FY26, but exporters affected by tariffs: SIDBI Survey
More than half of the manufacturing and trading Micro, Small and Medium Enterprises (MSMEs) in India have reported an increase in sales during the first quarter of the current financial year, however exporters felt the pinch of tariffs, noted the latest MSME Outlook Survey (MOS) conducted by the Small Industries Development Bank of India (SIDBI). The third round of the MSME Outlook Survey, covering the period April to June 2025, found that 42 per cent of MSMEs in the services sector also witnessed sales growth, while 48 per cent reported stable sales. Explore courses from Top Institutes in Please select course: Select a Course Category Healthcare Data Science Data Analytics Finance Management PGDM Public Policy Digital Marketing Degree Technology Design Thinking others Cybersecurity healthcare CXO MBA Project Management Operations Management Product Management MCA Data Science Artificial Intelligence Leadership Others Skills you'll gain: Financial Analysis in Healthcare Financial Management & Investing Strategic Management in Healthcare Process Design & Analysis Duration: 12 Weeks Indian School of Business Certificate Program in Healthcare Management Starts on Jun 13, 2024 Get Details SIDBI report stated, "Over half of manufacturing and trading MSMEs reported sales growth in Q1FY26". by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like When the Camera Clicked at the Worst Possible Time Read More Undo On a year-on-year basis, MSMEs across all sectors said they had seen sales growth. Around 60 per cent of the participants expect further growth in sales in the same quarter a year ahead. However, the report also highlighted some concerns. Nearly 40 per cent of MSME exporters said they were directly or indirectly affected by ongoing tariff-related issues, reflecting the impact of global trade uncertainties on Indian businesses. Live Events Despite these challenges, the overall mood among MSMEs remains positive. The Composite MSME Business Expectation Index (M-BEI) for the next quarter stood at 62.19, and for the quarter a year ahead, it stood at 67.88. These figures indicate a fairly optimistic business outlook for the sector. At the sectoral level, MSMEs in the trading and services sectors showed stronger optimism. The M-BEI for Q1FY27, as compared to Q1FY26, was recorded at 68.32 for trading and 68.24 for services. However, there is a moderate dip in the expectation indices across all sectors for the next quarter (Q2FY26), suggesting some near-term uncertainty due to the evolving global business environment. The SIDBI survey tracks business sentiments and short-term expectations of MSMEs in India. It also helps in filling critical data gaps in the sector by computing the MSME Business Confidence Index (M-BCI), which measures sentiment for the current quarter (Q1FY26 vs Q4FY25), and the MSME Business Expectations Index (M-BEI), which measures expectations for future quarters. The indices are based on six key parameters: sales, profit margins, availability of skilled labour, access to working capital finance, access to overall finance, and the overall business situation.
The Print
2 days ago
- Business
- The Print
Business confidence among MSMEs improved in April-June quarter: SIDBI survey
Manufacturing and trading MSMEs drove the gains, while the services sector remained stable with a marginal decline, it showed. The Composite MSME Business Confidence Index (M-BCI) rose to 63.75 during the quarter under review from 60.82 in the previous quarter. A value above 50 suggests positive sentiment. Kolkata, Jul 30 (PTI) Business confidence among micro, small, and medium enterprises improved in the April-June quarter, backed by steady domestic demand and a supportive financial environment, according to the latest MSME Outlook Survey released by SIDBI on Wednesday. The MSME Business Expectations Index (M-BEI), reflecting the outlook for upcoming quarters, stood at 62.19 for July-September and 67.88 for the first quarter of the next fiscal, suggesting sustained optimism despite headwinds like global tariffs and trade volatility. A total of 88 per cent of respondents reported improved access to finance, up from 79 per cent in the previous round, the survey said. The report also indicated that fewer MSMEs experienced a rise in borrowing costs, indicating early signs of transmission from the Reserve Bank of India's cumulative 100 basis point repo rate cut since February 2025 Over half the respondents reported an increase in sales and profitability, while expectations for the next four quarters remain bullish. Notably, profit margins improved despite lingering cost pressures, it said. Among the other key findings, the survey found, about 21 per cent of manufacturing and 20 per cent of services sector MSMEs operated at above-normal capacity, up from 12–14 per cent previously. Exporters flagged concerns over tariff-related uncertainties, with 40 per cent indicating an adverse impact. The findings are based on a survey of 1,200 MSMEs across 15 states and 45 districts, conducted by SIDBI's Economic Research and Data Analysis Vertical in partnership with the Academy of Management Studies, Lucknow. PTI BSM RBT This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
The Hindu
2 days ago
- Business
- The Hindu
More number of MSMEs seeing better capacity utilisation, shows SIDBI survey
Majority of the Micro, Small and Medium-scale Enterprises (MSMEs ) in the manufacturing and service sectors have seen an improvement in capacity utilisation in the first quarter of 2025-2026 compared with the previous quarter. According to the third edition of the 'MSME Outlook Survey' released by the Small Industries Development Bank of India (SIDBI) on Wednesday capturing the perspectives of 1,200 MSMEs operating across manufacturing, services, and trading sectors, nearly a fifth of the respondents reported above normal capacity utilisation level, for both manufacturing and services sector enterprises. This momentum is expected to continue, with nearly 29% of respondents projecting an increase in capacity utilisation in the next year. While 12 % of the respondents reported increase in capacity utilisation in the manufacturing sector during the last quarter of FY 25, 21 % reported an increase in the first quarter of the current fiscal. Access to finance has improved, with 88% of the MSMEs confirming the availability of overall finance, which is an increase from 79% in the previous survey. With increased sales, capacity utilisation, and input costs, there is now greater potential for expanding formal credit to support the sector's financing needs. The MSMEs nevertheless, remain concerned about the high cost of finance, according to the report. Further, the Composite MSME Business Confidence Index (M-BCI) for the first quarter of 2025-2026 (April–June) rose to 63.75 from 60.82 in the previous quarter. This uptick reflects a favourable business environment for MSMEs, the report said. In terms of sales performance, more than half of the MSMEs in the manufacturing and trading sectors reported growth and in the services sector, 42% of MSMEs recorded sales growth, while another 48% reported stable sales.
