India’s 7.8% Q1 Growth Signals Stronger Demand, Investment Opportunities For MSMEs: FISME President

New Delhi, Sept 8 (KNN) India’s real GDP growth accelerated to 7.8 per cent in Q1 FY2026-27, supported by strong manufacturing and services activity, with Federation of Indian Micro, Small and Medium Enterprises (FISME) President Rakesh Chhabra saying the broad-based nature of growth offers an encouraging outlook for micro, small and medium enterprises (MSMEs).

Real gross value added (GVA) grew 8.2 per cent during the quarter, while investment expanded 11.9 per cent, household consumption 7.1 per cent and exports 12 per cent. Manufacturing grew 9.2 per cent and services 10 per cent.

Chhabra said the simultaneous strengthening of consumption and investment was particularly significant, indicating that economic growth is becoming more broad-based despite ongoing geopolitical and trade uncertainties.

He added that income-tax relief announced in the Budget, which increased disposable income for a large section of households, may also be supporting consumption and domestic demand.

Demand, Investment Create Opportunities For MSMEs

For MSMEs, Chhabra said the composition of growth is more important than the headline GDP figure, as stronger consumption directly supports millions of small businesses, while investment, construction and manufacturing generate demand across domestic supply chains.

The 9.2 per cent expansion in manufacturing, along with stronger capital goods and infrastructure-related production, provides further grounds for optimism, he said.

The momentum has also continued into July, with industrial production rising 6.7 per cent. Cumulative merchandise and services exports during April-July increased 13.16 per cent year-on-year, while credit to industry and services grew 20 per cent and 22.9 per cent, respectively, in July.

Chhabra said the priority now should be to ensure that the demand revival reaches smaller enterprises through easier access to credit, timely payments, competitive input costs and greater participation in expanding supply chains.

If domestic demand remains buoyant and private investment continues to gather momentum, MSMEs can become not merely beneficiaries of India’s growth, but one of its principal multipliers, he added.

(KNN Bureau)