India MSME confidence improved in the July–September 2026 quarter despite rising input costs, a Small Industries Development Bank of India (SIDBI) survey found. The survey also showed that businesses remained optimistic about their prospects in the coming quarters.
Key Takeaways
- The overall business confidence index rose to 60.4 from 59.3 in the preceding quarter.
- About 49% of surveyed enterprises reported improved business conditions, while 18% reported softer conditions.
- Manufacturing businesses reported positive expectations for both late 2026 and the July–September 2027 quarter.
India MSME confidence stays above neutral
SIDBI’s eighth MSME Outlook Survey put the overall business confidence index at 60.4 for July–September, above the neutral level of 50. The index measures sentiment among micro, small and medium enterprises.
About one-third of enterprises reported unchanged business conditions compared with the previous quarter. The improvement in the overall index came despite continued pressure from rising input costs.
The survey’s overall business expectations index stood at 61.7 for October–December 2026 and 62.2 for July–September 2027. Those readings reflect businesses’ expectations, not results for those periods.
| Item | Details |
|---|---|
| Overall confidence, July–September 2026 | 60.4 |
| Manufacturing confidence, July–September 2026 | 61.0 |
| Services confidence, July–September 2026 | 61.3 |
| Overall expectations, October–December 2026 | 61.7 |
| Overall expectations, July–September 2027 | 62.2 |
Manufacturing and services sentiment improves
The manufacturing business confidence index rose to 61.0 from 59.5 in the preceding quarter. Around 43% of manufacturing enterprises reported positive sales growth, while 27% gave pessimistic responses.
The services confidence index also improved, reaching 61.3 from 60.4. Expectations for manufacturing remained positive, with the sector’s index at 63.3 for October–December 2026 and 64.8 for July–September 2027.
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