Latest news with #CompositeMSMEBusinessConfidenceIndex
Fibre2Fashion
3 days ago
- Business
- Fibre2Fashion
India's MSME confidence index rises to 63.75 in Q1 FY26: SIDBI
India's Composite MSME Business Confidence Index (M-BCI) for the first quarter (Q1) of fiscal 2026 (FY26) rose to 63.75 from 60.82 in the previous quarter, according to the MSME Outlook Survey. This uptick reflects a favourable business environment for MSMEs, with the manufacturing and trading sectors experiencing sharper improvements. India's MSME confidence rose in Q1 FY26, with the M-BCI at 63.75 and M-BEI at 62.19, signalling improved sentiment, especially in manufacturing, trading, and services. Sales, profits, finance access, and skilled labour availability improved. Capacity use rose, while EoDB and interest rate outlook showed positive trends, per SIDBI's pan-India MSME survey. The Composite MSME Business Expectations Index (M-BEI) stands at 62.19 for the next quarter and rises to 67.88 for the corresponding quarter next year. Although a moderate dip in the expectation indices is observed for Q2 FY26, the quarterly publication by the Small Industries Development Bank of India (SIDBI) revealed. In terms of sales performance, more than half of the MSMEs in the manufacturing and trading sectors reported growth in Q1 FY26. Year-on-year, MSMEs across all sectors indicated consistent sales growth, with around 60 per cent expecting further expansion over the next year. Despite a reported increase in input costs, MSMEs across sectors experienced improved net profit margins. The availability of skilled labour showed a notable improvement. Nearly one-fourth of MSMEs across all sectors reported better availability of skilled workers. Capacity utilisation among respondents improved during the current round, with nearly a fifth reporting above-normal utilisation levels in both manufacturing and services. This momentum is expected to carry forward, with nearly 29 per cent projecting a further increase in capacity utilisation over the next year. Access to finance also improved, with 88 per cent of participating MSMEs confirming the availability of overall finance—up from 79 per cent in the previous survey, SIDBI said in a media release. The survey suggests a gradual improvement in the interest rate environment, with fewer respondents reporting a rise in the cost of finance compared to the previous round. MSMEs, nevertheless, remain concerned about high financing costs. The recent 100 basis point reduction in the RBI's benchmark repo rate since February 2025 indicates a positive trend, with interest rate transmission underway, which is expected to ease financing challenges for MSMEs. The current survey also highlights an improvement in the Ease of Doing Business (EoDB). Around 50 per cent of respondents across sectors reported a better EoDB experience during Q1 FY26. Expectations for the future are equally positive, with more than 60 per cent anticipating further enhancements over the next year. In particular, about 50 per cent noted improvements in return filings and periodic compliance procedures. The indices, ranging from 0 to 100, reflect MSME sentiment and are based on six key parameters including sales, margins, labour, and finance availability. The current round is based on inputs from a representative sample of 1,200 MSMEs across different regions and industries. Fibre2Fashion News Desk (HU)
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Business Standard
01-08-2025
- Business
- Business Standard
Trump's tariff clouds cast a spreading gloom over export-focused MSME mood
The Small Industries Development Bank of India, in its third edition of 'MSME Outlook Survey', notes that tariff woes are dampening the mood among micro, small, and medium enterprises (MSMEs). This is despite the Composite MSME Business Confidence Index (M-BCI) for the first quarter (Apr-Jun) of the current financial year rising to 63.75 from 60.82 in the previous round, indicating a favourable business environment for MSMEs. Export turnover improved markedly for the manufacturing sector between Rounds 2 and 3, with 53 per cent of the respondents (exporters) indicating a sequential increase in sales. On a year-on-year basis, the export sales also improved for manufacturing exporters with 57 per cent respondents indicating increase in sales. However, the respondents in the sector appear to have subdued expectations one-year ahead with only 45 per cent expecting a growth from the current levels, possibly indicating the uncertainty on the tariff front. For services enterprises, 51 per cent of the respondents confirmed increased sales vis-à-vis 64 per cent in the previous quarter. The one-year ahead expectations also appear to be relatively subdued with 38 per cent of the respondents expecting an increase in sales. Nevertheless, 51 per cent of the respondents in the service sector expect to retain the sales figures of the last quarter in the quarter a year ahead. 51 per cent of the respondents confirmed increased sales vis-à-vis 64 per cent in the previous quarter Meanwhile, exporting MSMEs have been impacted by US tariff uncertainties. Nearly 40 per cent of the respondents, both in the manufacturing and services sector, have been impacted- directly or indirectly- by the tariff uncertainties. However, nearly a fifth of the manufacturing entities are unsure of the impact of tariff uncertainties. In the case of the services sector, the majority of the respondents, at 53 per cent, have not been impacted by the tariff uncertainties.
The Print
30-07-2025
- Business
- The Print
Business confidence among MSMEs improved in April-June quarter: SIDBI survey
Manufacturing and trading MSMEs drove the gains, while the services sector remained stable with a marginal decline, it showed. The Composite MSME Business Confidence Index (M-BCI) rose to 63.75 during the quarter under review from 60.82 in the previous quarter. A value above 50 suggests positive sentiment. Kolkata, Jul 30 (PTI) Business confidence among micro, small, and medium enterprises improved in the April-June quarter, backed by steady domestic demand and a supportive financial environment, according to the latest MSME Outlook Survey released by SIDBI on Wednesday. The MSME Business Expectations Index (M-BEI), reflecting the outlook for upcoming quarters, stood at 62.19 for July-September and 67.88 for the first quarter of the next fiscal, suggesting sustained optimism despite headwinds like global tariffs and trade volatility. A total of 88 per cent of respondents reported improved access to finance, up from 79 per cent in the previous round, the survey said. The report also indicated that fewer MSMEs experienced a rise in borrowing costs, indicating early signs of transmission from the Reserve Bank of India's cumulative 100 basis point repo rate cut since February 2025 Over half the respondents reported an increase in sales and profitability, while expectations for the next four quarters remain bullish. Notably, profit margins improved despite lingering cost pressures, it said. Among the other key findings, the survey found, about 21 per cent of manufacturing and 20 per cent of services sector MSMEs operated at above-normal capacity, up from 12–14 per cent previously. Exporters flagged concerns over tariff-related uncertainties, with 40 per cent indicating an adverse impact. The findings are based on a survey of 1,200 MSMEs across 15 states and 45 districts, conducted by SIDBI's Economic Research and Data Analysis Vertical in partnership with the Academy of Management Studies, Lucknow. PTI BSM RBT This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
The Hindu
30-07-2025
- Business
- The Hindu
More number of MSMEs seeing better capacity utilisation, shows SIDBI survey
Majority of the Micro, Small and Medium-scale Enterprises (MSMEs ) in the manufacturing and service sectors have seen an improvement in capacity utilisation in the first quarter of 2025-2026 compared with the previous quarter. According to the third edition of the 'MSME Outlook Survey' released by the Small Industries Development Bank of India (SIDBI) on Wednesday capturing the perspectives of 1,200 MSMEs operating across manufacturing, services, and trading sectors, nearly a fifth of the respondents reported above normal capacity utilisation level, for both manufacturing and services sector enterprises. This momentum is expected to continue, with nearly 29% of respondents projecting an increase in capacity utilisation in the next year. While 12 % of the respondents reported increase in capacity utilisation in the manufacturing sector during the last quarter of FY 25, 21 % reported an increase in the first quarter of the current fiscal. Access to finance has improved, with 88% of the MSMEs confirming the availability of overall finance, which is an increase from 79% in the previous survey. With increased sales, capacity utilisation, and input costs, there is now greater potential for expanding formal credit to support the sector's financing needs. The MSMEs nevertheless, remain concerned about the high cost of finance, according to the report. Further, the Composite MSME Business Confidence Index (M-BCI) for the first quarter of 2025-2026 (April–June) rose to 63.75 from 60.82 in the previous quarter. This uptick reflects a favourable business environment for MSMEs, the report said. In terms of sales performance, more than half of the MSMEs in the manufacturing and trading sectors reported growth and in the services sector, 42% of MSMEs recorded sales growth, while another 48% reported stable sales.
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Business Standard
30-07-2025
- Business
- Business Standard
Business confidence among MSMEs improved in Q1 FY26: Sidbi survey
Business confidence among micro, small, and medium enterprises improved in the April-June quarter, backed by steady domestic demand and a supportive financial environment, according to the latest MSME Outlook Survey released by SIDBI on Wednesday. The Composite MSME Business Confidence Index (M-BCI) rose to 63.75 during the quarter under review from 60.82 in the previous quarter. A value above 50 suggests positive sentiment. Manufacturing and trading MSMEs drove the gains, while the services sector remained stable with a marginal decline, it showed. The MSME Business Expectations Index (M-BEI), reflecting the outlook for upcoming quarters, stood at 62.19 for July-September and 67.88 for the first quarter of the next fiscal, suggesting sustained optimism despite headwinds like global tariffs and trade volatility. A total of 88 per cent of respondents reported improved access to finance, up from 79 per cent in the previous round, the survey said. The report also indicated that fewer MSMEs experienced a rise in borrowing costs, indicating early signs of transmission from the Reserve Bank of India's cumulative 100 basis point repo rate cut since February 2025 Over half the respondents reported an increase in sales and profitability, while expectations for the next four quarters remain bullish. Notably, profit margins improved despite lingering cost pressures, it said. Among the other key findings, the survey found, about 21 per cent of manufacturing and 20 per cent of services sector MSMEs operated at above-normal capacity, up from 1214 per cent previously. Exporters flagged concerns over tariff-related uncertainties, with 40 per cent indicating an adverse impact. The findings are based on a survey of 1,200 MSMEs across 15 states and 45 districts, conducted by SIDBI's Economic Research and Data Analysis Vertical in partnership with the Academy of Management Studies, Lucknow.
