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Time of India
20-05-2025
- Business
- Time of India
Industry hopeful of RBI rate cut "very soon"; expects over 6.5pc GDP growth in FY26: PHDCCI
The industry is hopeful of a rate cut by the Reserve Bank "very soon" and expects India's economic growth at more than 6.5 per cent in the current financial year, PHDCCI Secretary General and CEO Ranjeet Mehta said on Tuesday. He also outlined three major challenges faced by the country's micro small and medium enterprises (MSMEs), including access to affordable finance; technology and market access. "As far as rates are concerned, I think that RBI has definitely looked into it. They have reduced the repo rate . But we are, we are just waiting for the next RBI decision on this. And industry is hopeful that when inflation, we have seen the inflation data, which is within the zone of RBI, and we hope that there would be some kind of rate reduction in future, very soon," Mehta said. The next review meeting of the Monetary Policy Committee of the RBI is scheduled for June 4-6. Mehta also shared that the PHD Chamber of Commerce and Industry (PHDCCI) has projected economic growth of over 6.5 per cent for the current fiscal ending March 31, 2026. "We are looking at more than 6.5 per cent economic growth," Mehta said. Live Events He was speaking on the sidelines of an event to release the ' SME Market Sentiment Index ', based on the survey conducted on 3,000 pan-India SME firms across various manufacturing units. The index suggests positive momentum in business activity for the period Q4 FY2025 (January-March) compared to the previous quarter Q3 FY2025 and a robust growth outlook for the next quarter (Q1 FY2026: April-June). 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 an expansion of manufacturing activities compared to previous quarter values below 50 reflect a contraction in business activity. The index value of 50 suggests no change compared to the previous 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. "The idea of SME market sentiment index is to know the real result of the government schemes, various initiatives that the government of India is taking to boost the manufacturing, to boost our export and to help MSMEs to hand hold them. "And there are majorly three challenges that our MSME are facing. One is affordable finance easily, whether that is available or not. Number two is the technology ... and the third challenge that we identified is the market access. Many SMEs, have made their products, but they do not have the wherewithal to market those and find customers," Mehta said.
India Gazette
20-05-2025
- Business
- India Gazette
PHDCCI SME Index signals strong growth momentum for Q1 FY2026
New Delhi [India], May 20 (ANI): Industry body PHDCCI's SME Market Sentiment Index suggests a robust growth outlook for the first quarter of financial year 2026 (Q1 FY2026), based on a survey conducted on 3,000 pan-India SME firms across various manufacturing units. 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 per cent of respondents expect an improvement in business activity, 47 per cent anticipate increased hiring, and 53 per cent plan to boost capital expenditure. The SME Market Sentiment Index shows a positive momentum in business activity for the fourth quarter of financial year 2025 (Q4 FY2025) compared to previous quarter Q3 FY2025. 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 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 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. The market sentiment index report adds that 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. 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. The SME Business Activity Index (SME-BAI) reflects the expansion or contraction of SME manufacturing activity in the selected quarter as compared to the previous quarter. The SME Business Outlook Index (SME-BOI) indicates the anticipated momentum of SME manufacturing activity for the coming quarter, said the study. 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 Hemant Jain, President, PHDCCI. Dr Ranjeet Mehta, Secretary General and CEO of PHDCCI, emphasised 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. (ANI)
Economic Times
20-05-2025
- Business
- Economic Times
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 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 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.
Time of India
20-05-2025
- Business
- Time of India
MSMEs bullish on Q1 FY2026 growth prospects: Report
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads 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 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 these indices will serve as a valuable tool for policymakers, industry stakeholders, and investors to make informed decisions, he 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 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 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 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 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 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 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 findings highlight a positive outlook for growth, job creation, and investment in the SME manufacturing sector, said Sanat Kumar, Chief Economist, PHDCCI.
