New Delhi, Mar 9 (KNN) Confidence among India’s MSMEs has shown steady improvement across sectors, according to the MSME Business Conditions Index (M-BCI) of the Small Industries Development Bank of India (SIDBI).
The year-on-year comparison between October–December 2024 (Round 1 M-BCI) and October–December 2025 (Round 5 M-BCI) indicates a broad-based rise in business sentiment among MSMEs.
The composite M-BCI increased from 58.3 to 60.8, reflecting improved confidence across manufacturing, trading and services sectors.
Sector-wise, the manufacturing segment recorded an increase from 60.3 to 64.1, while the trading sector posted the highest growth, rising from 52.5 to 57.4. The services sector also registered an improvement, with the index moving from 59.7 to 60.4.
According to SIDBI, the index strengthened across all sectors, with improvements recorded in five of the six key indicators, including significant gains in access to working capital finance.
In the manufacturing sector, 46 percent of respondents reported better access to working capital, compared with 35 percent in the previous quarter.
The M-BCI for October–December 2025 stood at 60.8, indicating a year-on-year increase despite a slight moderation on a quarter-on-quarter basis.
Meanwhile, the MSME Business Expectations Index (M-BEI) for the same quarter a year ahead, October–December 2026, was estimated at 65.0, suggesting continued optimism about future business conditions.
SIDBI noted that improving liquidity conditions and stronger business sentiment point to a more resilient MSME ecosystem in the coming period.
(KNN Bureau)
