MSMEs show improved sentiments for Q4 2025, bullish on Q1 FY2026 growth prospects: Report
PHDCCI SME Market Sentiment Index suggests robust growth outlook for MSMEs in next quarter (Q1 FY2026), based on survey conducted on 3,000 pan-India SME firms across various manufacturing units.
New Delhi: PHDCCI SME Market Sentiment Index suggests positive momentum in business activity for the period Q4 FY2025 compared to previous quarter Q3 FY2025 and robust growth outlook for next quarter (Q1 FY2026), based on survey conducted on 3,000 pan-India SME firms across various manufacturing units, said a report released by PHD Research Bureau, PHDCCI, 'SME Market Sentiment Index'.
According to the report, the government's proactive and effective initiatives—including credit support, technological assistance, infrastructure development, and skill training—have significantly transformed small and medium-sized enterprises (SMEs) into a vibrant and dynamic sector of the Indian economy. These efforts have fostered entrepreneurship and created numerous employment opportunities, said Hemant Jain, President, PHDCCI, in a press statement issued here today.
To capture the SME market sentiment, two indices, the SME Business Activity Index (SME-BAI) and SME Business Outlook Index (SME-BOI) were computed, said Jain. The objective of the SME Business Activity Index (SME-BAI) index is to capture the direction and momentum of the SME manufacturing sector by assessing performance of key business activity relative to the previous quarter, while SME Business Outlook Index (SME-BOI) captures the business outlook for next quarter. Both these indices will serve as a valuable tool for policymakers, industry stakeholders, and investors to make informed decisions, he said. The value of SME Business Activity Index (SME-BAI) ranges from 0 to 100, where 50 is the base value. The index above 50 reflects expansion of manufacturing activities compared to previous quarter values below 50 reflects contraction in business activity. The index value of 50 suggests no change compared to the previous quarter, said the study.
The values of the SME Business Outlook Index (SME-BOI) range from 0 to 100. The index above 50 reflects expansion of manufacturing activities for the next quarter while values below 50 reflects contraction in business activity for the next quarter. The index value of 50 suggests no change in outlook for the next quarter, said the study. The SME Business Activity Index (SME-BAI) recorded a robust 57.7 points, indicating significant expansion in manufacturing activities compared to the previous quarter. This growth is driven by a strong New Orders Index of 71.7, reflecting high demand and a strong work pipeline, along with an Output/Production Index of 66.7, pointing to business activities gaining momentum, said Mr Hemant Jain.The Employment Index stood steady at 55.0, aligning with the rising economic activity, while the Inventories Index of 60.0 suggests that firms are actively restocking to meet anticipated demand, said Mr Jain.We highly appreciate the policy reforms and array of programme initiatives undertaken by the government to support the SME sector. These proactive policies and programmes will go a long way to transform the MSME landscape, he said.
SME Business Outlook Index (SME-BOI) which provides the outlook for the next quarter stood at 60.3, signaling strong confidence in the economy. Notably, 67% of respondents expect an improvement in business activity, 47% anticipate increased hiring, and 53% plan to boost capital expenditure, said Jain.
Ranjeet Mehta, Secretary General and CEO of PHDCCI, emphasized that these indices have been created to fulfill the need for a reliable, data-driven tool to assess the health and outlook of India's SME manufacturing sector, which is a backbone to the Indian economy. The continuous handholding by the government has resulted in formalization of more than 5 crore MSMEs, contributing significantly to exports, creating millions of jobs and fostering inclusive development. Going forward, to fulfil our endeavor to promote the growth of the SME sector, we will add indices related to exports and services market. Our findings highlight a positive outlook for growth, job creation, and investment in the SME manufacturing sector, said Sanat Kumar, Chief Economist, PHDCCI.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
8 hours ago
- Time of India
Noida power boost: Sector 25 transformer upgraded to 10 MVA; 20k consumers in 3 sectors to benefit
NOIDA: Over 20,000 consumers in Sectors 25, 21, and 12 are set to receive a better power supply as the transformer capacity at the 33/11 kV substation in Sector 25 was increased from 5 MVA to 10 MVA on Saturday. According to officials, this was done to address the increasing load on the existing transformer amid rising power demand in the area. With the capacity enhancement, the power distribution network of the three sectors will experience a more streamlined supply. "On June 7, the work of increasing the capacity of the power converter from 5 MVA to 10 MVA was completed at the substation in Sector 25 under the business plan works of 2024-25. With this work, an uninterrupted power supply will be provided to the consumers of Sectors 25, 21, and 12, especially in the summer season," said Sanjay Kumar Jain, Chief Engineer, Noida power department, PVVNL. Earlier, on May 21, a new transformer of 5 MVA was installed at Sector 80. With that, consumers of Sectors 80 and 112 were targeted to benefit from the infrastructure upgrade, said Jain. Jain further stated that this step was taken due to the increase in demand for electricity in the summer months. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Windows Users Don't Forget To Do This Before Sunday Read More Undo "Given the increasing heat and power consumption, this upgradation was the need of the hour. This work will not only increase the availability of electricity but will also maintain the stability of voltage, which will provide relief to consumers from the problem of low voltage or power cuts," he said. According to a power department official, the capacity of power substations is being increased as per requirement, not apart from designated areas where they are scheduled for upgrade. The move follows extensive surveys conducted earlier of densely populated areas and the successive power demand over the years. As against the current power demand of 1700 to 1800 MW, the peak power demand in Noida is expected to cross 2700 MW in July and August. As per Ramesh Chandra, Executive Engineer of the Sector 25 substation, the transformer capacity enhancement was done keeping in mind the needs of both industrial and residential sectors.
&w=3840&q=100)
Business Standard
13 hours ago
- Business Standard
TReDS platform M1xchage eyes IPO in 3-5 years, aims ₹1.25 trn biz in FY25
M1xchage, a leading RBI-licensed Trade Receivables Discounting System (TReDS) platform, which is witnessing an 80-90 per cent annual growth in business, is planning to go public in the next 3-5 years. "Although the company has been profitable for the last two years, the initial public offering (IPO) is still a few years away. We would look at an IPO in 3-5 years, depending on market conditions," M1xchange Chief Executive Officer Sundeep Mohindru told PTI. M1xchage, which started operations in 2017, is aiming to close the financial year with a business of Rs 1.25 trillion. Factoring as a business is picking up very well as it is win-win for the banks, buyers and sellers, he said, adding that the business has been witnessing a growth of 80-90 per cent on an annual basis. During the current financial year, he said the business is expected to reach Rs 1.25 trillion. Last year, the volume was to the tune of Rs 78,000 crore as compared to Rs 43,000 crore in FY24. The platform is facilitating invoice financing of nearly Rs 10,000 crore each month, enabling MSMEs with faster access to working capital and driving adoption across corporates, vendors, and financial institutions. India's supply chain finance sector is witnessing accelerated growth, driven by the need for faster-working capital access for MSMEs and digital transformation across industries. With the Reserve Bank of India's (RBI's) TReDS framework, digital platforms are increasingly becoming the backbone of MSME financing, he said. The platform facilitates discounting of invoices and bills of exchange, or trade receivables of micro, small and medium enterprises from corporate and other buyers, through multiple financiers such as banks and non-bank entities. Factoring or invoice discounting refers to transfer in ownership or financing of accounts by a third party or factor at a discount for commission and fees, wherein the factor makes a profit upon the settlement of the debt. About funding for business growth, Mohindru said the company is well capitalised at the moment to drive exponential growth. Recently, growth-stage investment firm Filter Capital invested about $10 million (Rs 85 crore) in trade receivables discounting system platform M1xchange. Prior to this, Jindal Stainless, leading stainless steel manufacturer, along with its wholly owned subsidiary, Jindal Stainless Steelway Ltd, acquired a 9.62 per cent stake in M1xchange. This deal involved a combination of primary capital and a secondary purchase of shares from existing shareholders. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Economic Times
13 hours ago
- Economic Times
TReDS platform M1xchage plans IPO in 3-5 years
M1xchage, a leading RBI-licensed Trade Receivables Discounting System (TReDS) platform, which is witnessing an 80-90 per cent annual growth in business, is planning to go public in the next 3-5 years. ADVERTISEMENT "Although the company has been profitable for the last two years, the initial public offering (IPO) is still a few years away. We would look at an IPO in 3-5 years, depending on market conditions," M1xchange Chief Executive Officer Sundeep Mohindru told PTI. M1xchage, which started operations in 2017, is aiming to close the financial year with a business of Rs 1.25 lakh crore. Factoring as a business is picking up very well as it is win-win for the banks, buyers and sellers, he said, adding that the business has been witnessing a growth of 80-90 per cent on an annual basis. During the current financial year, he said the business is expected to reach Rs 1.25 lakh crore. Last year, the volume was to the tune of Rs 78,000 crore as compared to Rs 43,000 crore in FY24. The platform is facilitating invoice financing of nearly Rs 10,000 crore each month, enabling MSMEs with faster access to working capital and driving adoption across corporates, vendors, and financial institutions. ADVERTISEMENT India's supply chain finance sector is witnessing accelerated growth, driven by the need for faster-working capital access for MSMEs and digital transformation across industries. With the Reserve Bank of India's (RBI's) TReDS framework, digital platforms are increasingly becoming the backbone of MSME financing, he said. ADVERTISEMENT The platform facilitates discounting of invoices and bills of exchange, or trade receivables of micro, small and medium enterprises from corporate and other buyers, through multiple financiers such as banks and non-bank entities. Factoring or invoice discounting refers to transfer in ownership or financing of accounts by a third party or factor at a discount for commission and fees, wherein the factor makes a profit upon the settlement of the debt. ADVERTISEMENT About funding for business growth, Mohindru said the company is well capitalised at the moment to drive exponential growth. Recently, growth-stage investment firm Filter Capital invested about USD 10 million (Rs 85 crore) in trade receivables discounting system platform M1xchange. ADVERTISEMENT Prior to this, Jindal Stainless, leading stainless steel manufacturer, along with its wholly owned subsidiary, Jindal Stainless Steelway Ltd, acquired a 9.62 per cent stake in M1xchange. This deal involved a combination of primary capital and a secondary purchase of shares from existing shareholders. (You can now subscribe to our ETMarkets WhatsApp channel)
