Cautious Optimism: Indian Small Businesses Recalibrate Amid Global Uncertainties

The ASSOCHAM–Dun & Bradstreet Small Business Confidence Index for the second quarter of 2025 shows a minor dip in Indian small business sentiment, although optimism remains higher compared to the previous year. This trend demonstrates cautious optimism fueled by sturdy domestic demand and expectations of better financing conditions.

Global uncertainties and supply chain disruptions have led to a 1.8% decline in the confidence index compared to the previous quarter, settling at 105.4. Nonetheless, the strong domestic fundamentals and improved hiring outlook indicate that optimism is sustained.

Challenges such as a sharp drop in export order expectations and rising global trade tensions are prompting small businesses to adopt a more conservative approach. While margin pressures and tighter credit conditions pose challenges, the sector's resilience is vital for India's economic growth.

(With inputs from agencies.)