New Delhi, February 24 (IANS). According to the Outlook Survey of SIDBI released on Tuesday, the MSME Business Confidence Index (M-BCI) for the October-December 2025 quarter has registered a year-on-year improvement. Despite global risks, the domestic macroeconomic environment has remained strongly supportive.
It was told in the survey that the biggest improvement was seen in working capital and total finance availability. Sales and the overall business environment have also improved, reflecting strong demand and stable operating conditions. The improvement in sentiment on an annual basis was mainly driven by the favorable domestic economic environment, even as external challenges persist.
The survey shows that MSME exporters have shown interest in RBI’s trade relief measures and policy support schemes like Credit Guarantee Scheme for Exporters (CGSE). 43 per cent of respondents plan to take advantage of the RBI’s trade relief scheme, 46 per cent intend to adopt CGSE, while about 37 per cent want to use both options.
Small Industries Development Bank of India (SIDBI) released the fifth edition of its “MSME Outlook Survey”. It is a quarterly publication that provides information on the current business status and future prospects of India’s MSME sector.
The survey also said that the new labor codes provide an opportunity for MSMEs to strengthen their operating structures and move ahead with formalization. While 34-36 percent of companies surveyed expect compliance costs to increase in the short term, many companies suggested that clearer guidelines (16-21 percent) and better training and awareness initiatives (17-19 percent) could ease this transition. The survey also said that capacity building will be necessary for successful and smooth implementation.
MSME confidence also remained stable on a quarterly basis as the manufacturing sector picked up, reflecting a positive outlook across sectors. The overall M-BCI for the October-December 2025 quarter is pegged at 60.8. Sectorally, manufacturing improved and its M-BCI increased from 62.9 to 64.1, while trading and services sectors saw a slight softening.
The overall M-BEI (Business Expectation Index) is also showing positive signs. It is projected to reach 63.7 in the next quarter and 65.0 after a year (October-December 2026), indicating an optimistic business environment in the near future.
Confidence regarding sales in the manufacturing sector remained strong and expectations of sales growth in future are also high. Although sales sentiments in the service and trading sector did not show much improvement in the current quarter, respondents remain optimistic for the times ahead.
There has been a lot of optimism regarding the availability of working capital in the current quarter. 46 per cent of manufacturing sector respondents showed a positive outlook, up from 35 per cent in the previous quarter. Similarly, positive sentiment regarding overall finance availability reached 47 percent.
The survey said that there was a slight improvement in sentiments on finance-related indicators in the service sector. At the same time, sentiments regarding working capital in the trading sector weakened slightly, but confidence regarding overall finance availability has strengthened.
–IANS
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