SIDBI Survey Underscores MSME Resilience, Calls For Credit Support

ENA MSME 2025-04-08 13:49:41 New Delhi, April 8 (KNN) The Small Industries Development Bank of India (SIDBI) has published the second edition of its MSME Outlook Survey covering January-March 2025. This comprehensive pan-India survey, encompassing approximately 1,200 MSMEs across various regions and industries, aims to address the significant data gap in the sector through two principal indices: the MSME Business Conditions Index (M-BCI) and the MSME Business Expectations Index (M-BEI). The survey reveals predominantly positive sentiment within the MSME sector, with the Composite M-BCI for Q4 FY25 registering at 60.82, an increase from 58.30 in the previous quarter. This upward trend indicates robust business conditions across manufacturing, services, and trading sectors. Future expectations remain favorable, with M-BEIs for the forthcoming four quarters consistently exceeding 54, despite a slight moderation in overall optimism attributed to global economic uncertainties and increasing tariff barriers. Sales growth prospects remain strong among MSMEs, supported by robust order volumes, increased production, and higher selling prices. A significant majority of respondents anticipate stable or improved profitability in Q4 FY25, notwithstanding moderate increases in input and salary costs. The long-term profitability outlook is similarly optimistic, with enterprises relying on higher production volumes and improved price realisations to maintain or enhance profit margins. Employment generation continues to be a focus area, with approximately one-third of surveyed enterprises in manufacturing and services reporting workforce expansion during the current quarter. Looking ahead, about 40 percent of manufacturers and 37 percent of service providers expect to increase employment by the fourth quarter of FY26. However, challenges persist regarding skilled labor availability, with approximately one-sixth of respondents identifying this as a concern. Capital expenditure intentions present an encouraging trend, with 37 percent of MSMEs reporting capacity expansion during the current period and a similar proportion planning additional investments in the coming year. This investment confidence is complemented by a growing commitment to sustainability, as around 40 percent of MSMEs have implemented eco-friendly initiatives such as solar panel installation and adoption of electric vehicles, with a comparable number planning further investments in sustainable practices. Regarding financing, credit access remains widespread with 80 percent of respondents reporting availability. Nevertheless, adequacy concerns persist, with 40 percent of manufacturing and 41 percent of services enterprises indicating that available finance does not fully satisfy their requirements. While optimism regarding improved credit access in the coming year is evident, nearly 20 percent of MSMEs continue to express concerns. Additionally, financing costs remain problematic, with 40 percent of MSMEs reporting higher borrowing costs during the survey period and an even larger percentage anticipating continued elevated costs. Manoj Mittal, Chairman and Managing Director of SIDBI, noted during the report release, SIDBI has always played a significant role in the robust growth of the Indian MSME sector through both financial and developmental initiatives. Their plans for CAPEX, employment and adoption of sustainable and green technologies augur well for our economy. I believe that with necessary support from all the stakeholders, Indian MSMEs will remain steady on their growth track amidst the cloudy external environment, he added. The Quarterly Outlook Survey is another initiative to 'understand MSMEs' in a better manner. During a time of increased global uncertainties fuelled by unprecedented tariff barriers, MSMEs have shown remarkable resilience and pro-growth sentiments. (KNN Bureau) 41674 https://knnindia.co.in/news/newsdetails/msme/sidbi-survey-underscores-msme-resilience-calls-for-credit-support 2025-04-08 13:49:41 knnindia.co.in SIDBI Survey Underscores MSME Resilience, Calls For Credit Support