Small can be beautiful: MSME sector gears up for transformational changes

The MSME sector may be on the cusp of a big change if it seizes on the opportunities in financing and protection in getting dues

The Small Industries Development Bank of India’s ‘MSME Outlook Survey Round One October-December 2024’ shows the sector is bullish. The MSME Business Expectations Index – it 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 above 65, reflecting greater optimism. For January-March it is at 66.35; April-June at 68.83, July-September at 68.93 and October-December at 69.94.

 

And measures in the Union Budget for Financial Year 2025-26 (FY26) may give a fillip to this upbeat mood. “The increase in the credit guarantee cover for MSMEs