Micro, Small, and Medium Enterprises (MSMEs) across India have reported an encouraging uptick in business performance for the October-December 2024 quarter, according to the inaugural MSME Outlook Survey released by the Small Industries Development Bank of India (SIDBI).
The quarterly survey, which serves as a barometer of MSME business sentiment, gathered insights from 1,200 MSMEs across the Manufacturing, Services, and Trading sectors. Covering 77 cities across Tier 1, 2, and 3 urban centers, along with 66 villages, the survey assessed business confidence based on 22 critical parameters, including sales growth, profitability, employment trends, financial accessibility, cost of funds, and ease of doing business.
Key Findings Reflect Strong Business Optimism
The survey results indicate robust business confidence, particularly within the manufacturing sector, fueled by positive expectations for sales growth, profitability, availability of skilled labor, and improved access to finance. MSMEs are also demonstrating a steady embrace of digital technologies and sustainability initiatives, marking a significant shift in their operational strategies.
Speaking at the launch, Shri Manoj Mittal, Chairman and Managing Director of SIDBI, emphasized the sector’s pivotal role in India’s economic framework. “MSMEs serve as the crucial foundation of the Indian economy and a powerful instrument for bringing about socioeconomic change. SIDBI has always acknowledged the incredible contribution of MSMEs in India’s growth story and is committed to the development of the sector through both financial and non-financial initiatives. The importance given to this sector by the Government of India is also evident from the fact that it has been identified as one of the four growth engines of the economy during the recent union budget. I firmly believe that the continuous flow of quality information on MSMEs through this survey will help all stakeholders in evaluating the current business climate and fine-tune their respective approaches,” he stated.
Sustainability and Digital Adoption on the Rise
The report highlights a growing commitment to sustainability, with 39% of MSMEs increasing investments in environmental protection measures, including the adoption of solar panels, electric vehicles, and advanced technologies during the quarter. Furthermore, 44% of businesses plan to expand such investments in the coming year, reflecting an increased awareness of environmental responsibilities.
In terms of financial health, 73% of surveyed MSMEs reported satisfaction with trade receivable timelines, with 14% noting improvements from the previous quarter. Additionally, 38% expect further enhancements in this area over the next year.
Positive Sales and Export Outlook
Sales growth expectations remain strong, with 43% of MSMEs anticipating growth in the next quarter and 45% projecting expansion over the next year. Notably, export optimism has surged significantly, with expectations rising from 22% for the Oct-Dec 2024 quarter to 36% for the same period in 2025.
This comprehensive outlook underscores the resilience and adaptability of India’s MSME sector, positioning it as a key driver of economic growth and innovation in the years ahead.