New Delhi, Feb 5 (IANS) Micro, small, and medium enterprises (MSMEs), across India’s manufacturing, trading, and services sectors, have recorded an uptick in their business performance in the October-December quarter of 2024-25 and are bullish on the growth outlook for the year ahead, according to a survey released by the Small Industries Development Bank of India (SIDBI) on Wednesday.
“Majority of MSMEs are optimistic on sales growth buoyed by positive sentiment on order books, production and rise in selling price for the next quarter and a year ahead as well,” the SIDBI’s first-ever outlook survey states.
The employment scenario was broadly steady in the October-December 2024 quarter with a majority of respondents’ employee strength remaining unchanged. The expectations for the future, however, are bullish with 30-40 per cent planning to increase their workforce in the next quarter. The optimism is more pronounced in the manufacturing sector and relatively sedate in trading.
The share of responses in favour of the adoption of digital modes for selling & marketing rising steadily going forward.
More than 70 per cent of the participants in all sectors were satisfied with the time and effort taken to obtain permits & clearances and supply of electricity, while about 15 per cent reported improvement in these parameters in the October-December 2024 quarter. The share of respondents expecting improvement on these parameters a year ahead from now also rises across the sectors.
Key findings of the survey indicate strong business confidence among MSMEs, particularly in the manufacturing sector reflecting optimism in sales, profitability, skilled labour availability, and access to finance for the coming quarters.
Additionally, the report highlights a steady rise in digital adoption and sustainability measures across MSMEs.
The survey also highlights a rising commitment to sustainability, with 39 per cent of MSMEs increasing investments in environmental protection measures such as solar panels, electric vehicles, and new technology during the quarter, and 44 per cent planning to expand such investments in the next year.
Additionally, 73 per cent of participants found trade receivable timelines acceptable, with 14 per cent noting an improvement from the previous quarter and 38 per cent expecting further enhancements a year ahead.
Sales growth expectations remain robust, with 43 per cent anticipating expansion next quarter and 45 per cent over the next year, while export optimism has surged from 22 per cent for October-December 2024 to 36 per cent for October-December 2025.
SIDBI’s first-ever MSME Outlook Survey covers 1,200 MSMEs a pan-India across manufacturing, services, and trading sectors. It captures MSMEs’ assessment of current business situation and future expectations on 22 parameters ranging from business performance to availability of skilled labour, employment generation, capacity addition, financial access, cost of funds and ease of doing business. The survey covered 77 cities (Tier 1, 2, and 3) and 66 villages across India, ensuring a diverse representation of MSME voices, according to a SIDBI statement.
SIDBI Chairman and Managing Director Manoj Mittal, while releasing the report, said: “SIDBI has always acknowledged the incredible contribution of MSMEs in India’s growth story and is committed to the development of the sector through both financial and non-financial initiatives.”
–IANS
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