MUMBAI: If you want to know what’s really happening in India’s bustling micro, small, and medium enterprise (MSME) sector, SIDBI has just made life easier. The Small Industries Development Bank of India (SIDBI) has released the inaugural edition of its MSME Outlook Survey, a quarterly report that takes the pulse of India’s MSMEs, delivering valuable insights into their performance, expectations, and market sentiment.
The survey, covering manufacturing, services, and trading sectors, introduces two new indices—the MSME-Business Conditions Index (M-BCI) and the MSME-Business Expectations Index (M-BEI). These indices, ranging from 0 to 100, gauge market sentiment, with readings above 50 signalling optimism and those below 50 indicating caution.
The MSME sector seems to be on an upward trajectory, with the latest survey painting a positive picture:
. Business conditions are improving, with manufacturing leading at 60.33 M-BCI, followed closely by services at 59.67.
. Optimism is high for the future, with M-BEI projections exceeding 60, while manufacturing alone soars past 70.
. Sales growth, profitability, and production outlooks remain bullish, with order books filling up fast.
. Manufacturers expect rising input costs but anticipate higher profitability due to increased production and selling prices.
.15 per cent of MSMEs foresee improvements in skilled labour availability and infrastructure, including electricity supply and permit processing.
. Employment levels remain stable, but 30-40 per cent of respondents plan to expand their workforce soon.
. Digital marketing, environmental protection, and technology adoption are gaining traction, as MSMEs embrace modern business strategies.
Commenting on the survey launch, SIDBI chairman & managing director Manoj Mittal emphasised the importance of MSMEs in shaping the economy, “MSMEs are the backbone of the Indian economy and a vital driver of socio-economic change. This survey will provide stakeholders with valuable insights, enabling them to evaluate the current business climate and fine-tune their strategies.”
The full report is available at www.sidbi.in.
