Rising Sales Amid Trade Challenges: MSMEs' Optimistic Outlook

More than half of India's manufacturing and trading MSMEs reported increased sales in the first quarter of the fiscal year, according to the latest MSME Outlook Survey by SIDBI. In contrast, exporters are feeling the impact of tariff-induced challenges, reflecting the ongoing global trade tensions.

The survey, which analyzed data from April to June 2025, revealed that 42% of services sector MSMEs saw sales growth while 48% recorded stable sales. Year-on-year improvement in sales was noted across all sectors, with 60% of participants anticipating continued growth next year.

However, nearly 40% of MSME exporters reported being affected by tariff issues. Despite these obstacles, the sector retains a positive outlook. The Composite MSME Business Expectation Index (M-BEI) stood at 62.19 for the next quarter, climbing to 67.88 for the quarter a year ahead. Trading and services MSMEs showed stronger optimism, though short-term uncertainties persist in the global business environment.

(With inputs from agencies.)