Over 50% of manufacturing MSMEs report sales growth in Q1FY26, but exporters affected by tariffs: SIDBI Survey
Despite these challenges, the overall mood among MSMEs remains positive. The Composite MSME Business Expectation Index (M-BEI) for the next quarter stood at 62.19, and for the quarter a year ahead, it stood at 67.88. These figures indicate a fairly optimistic business outlook for the sector.At the sectoral level, MSMEs in the trading and services sectors showed stronger optimism. The M-BEI for Q1FY27, as compared to Q1FY26, was recorded at 68.32 for trading and 68.24 for services.However, there is a moderate dip in the expectation indices across all sectors for the next quarter (Q2FY26), suggesting some near-term uncertainty due to the evolving global business environment.
The SIDBI survey tracks business sentiments and short-term expectations of MSMEs in India. It also helps in filling critical data gaps in the sector by computing the MSME Business Confidence Index (M-BCI), which measures sentiment for the current quarter (Q1FY26 vs Q4FY25), and the MSME Business Expectations Index (M-BEI), which measures expectations for future quarters. The indices are based on six key parameters: sales, profit margins, availability of skilled labour, access to working capital finance, access to overall finance, and the overall business situation.
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