MSMEs upbeat about business growth, plan to increase workforce: Survey

Optimism more pronounced in manufacturing and comparatively sedate in trading: SIDBI report

MSMEs reported sales growth in the October-December quarter of Financial Year 2024-25 and they are bullish about their future, according to a lender’s survey released earlier this week.

 

Almost 45 per cent of micro, small and medium enterprises believe the fourth quarter could see robust sales growth, according to the first-ever MSME Outlook Survey conducted by Small Industries Development Bank of India (SIDBI). At least 30-40 per cent of MSMEs plan to increase their workforce in the next quarter. The optimism is more pronounced in the manufacturing sector and comparatively sedate in trading, it said.

 

The 'MSME Outlook Survey’s Business Conditions Index (BCI) stood at 58.30, indicating positive business sentiment. The BCI is a diffusion index that ranges from 0 to 100, where scores above 50 indicate positive sentiment and scores below 50 suggest negative sentiment.

 

The MSME Business Expectations Index (BEI), which is also a diffusion index and ranges between 0 and 100, is consistently above 60 for the next four quarters: From January-March 2025 to October-December 2025. The index reading is persistently above 65, reflecting greater optimism.

 

The survey covered some 1,200 MSMEs nationwide, assessing 22 parameters, including business performance, employment trends, financial access, and ease of doing business. About a sixth of the respondents in all sectors were not satisfied with the labour productivity and availability of skilled labour during the survey period. They expect the same to improve in the year ahead.