 "Trump's tariff clouds cast a spreading gloom over export-focused MSME mood")
The Small Industries Development Bank of India, in its third edition of 'MSME Outlook Survey', notes that tariff woes are dampening the mood among micro, small, and medium enterprises (MSMEs). This is despite the Composite MSME Business Confidence Index (M-BCI) for the first quarter (Apr-Jun) of the current financial year rising to 63.75 from 60.82 in the previous round, indicating a favourable business environment for MSMEs.
Export turnover improved markedly for the manufacturing sector between Rounds 2 and 3, with 53 per cent of the respondents (exporters) indicating a sequential increase in sales. On a year-on-year basis, the export sales also improved for manufacturing exporters with 57 per cent respondents indicating increase in sales. However, the respondents in the sector appear to have subdued expectations one-year ahead with only 45 per cent expecting a growth from the current levels, possibly indicating the uncertainty on the tariff front.
For services enterprises, 51 per cent of the respondents confirmed increased sales vis-à-vis 64 per cent in the previous quarter. The one-year ahead expectations also appear to be relatively subdued with 38 per cent of the respondents expecting an increase in sales. Nevertheless, 51 per cent of the respondents in the service sector expect to retain the sales figures of the last quarter in the quarter a year ahead.
51 per cent of the respondents confirmed increased sales vis-à-vis 64 per cent in the previous quarter
Meanwhile, exporting MSMEs have been impacted by US tariff uncertainties. Nearly 40 per cent of the respondents, both in the manufacturing and services sector, have been impacted- directly or indirectly- by the tariff uncertainties. However, nearly a fifth of the manufacturing entities are unsure of the impact of tariff uncertainties. In the case of the services sector, the majority of the respondents, at 53 per cent, have not been impacted by the tariff uncertainties.
40 per cent of the respondents, both in the manufacturing and services sector, have been impacted by the tariff uncertainties
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%