Synopsis
A recent SIDBI survey reveals that MSMEs in India experienced a positive shift in business performance during the October-December quarter of 2024-25. With optimism regarding sales growth and hiring, the report highlights key trends in digital adoption and sustainability efforts among these enterprises.Key Takeaways
- MSMEs show confidence in sales growth
- 30-40% plan to hire more staff
- Satisfaction with permits and clearances exceeds 70%
- 39% increased sustainability investments
- Export optimism rose significantly
New Delhi, Feb 5 (NationPress) Micro, small, and medium enterprises (MSMEs) throughout India’s manufacturing, trading, and services sectors have noted a positive shift in their business activities during the October-December quarter of 2024-25, showing optimism about future growth, as revealed by a survey conducted by the Small Industries Development Bank of India (SIDBI) on Wednesday.
The majority of MSMEs express confidence in sales growth, driven by favorable sentiments regarding order books, production levels, and increasing selling prices for both the next quarter and the upcoming year, as indicated in SIDBI’s inaugural outlook survey.
The employment landscape remained relatively stable during the October-December 2024 quarter, with most participants reporting no change in their workforce. However, future expectations are quite optimistic, with 30-40% intending to expand their teams in the upcoming quarter. This optimism is particularly strong in the manufacturing sector, while the trading sector appears more subdued.
The percentage of businesses favoring digital sales and marketing methods is steadily increasing.
Over 70% of respondents across all sectors expressed satisfaction with the time and effort required to secure permits and clearances, as well as electricity supply. Additionally, around 15% noted improvements in these areas during the October-December 2024 quarter, with expectations for further advancements over the next year.
Key insights from the survey highlight significant business confidence among MSMEs, especially in manufacturing, reflecting positivity regarding sales, profitability, skilled labor availability, and access to financing in the upcoming quarters.
Moreover, the report emphasizes a consistent increase in digital adoption and sustainability initiatives among MSMEs.
The survey also showcases a growing dedication to sustainability, with 39% of MSMEs boosting investments in environmental initiatives such as solar panels, electric vehicles, and innovative technologies during the quarter, while 44% plan to enhance such investments in the coming year.
Additionally, 73% of participants found the timelines for trade receivables acceptable, with 14% reporting improvements from the previous quarter and 38% anticipating further enhancements over the next year.
Sales growth expectations remain strong, with 43% expecting expansion in the next quarter and 45% over the next year. Export optimism has also increased from 22% for October-December 2024 to 36% for October-December 2025.
SIDBI’s inaugural MSME Outlook Survey encompasses 1,200 MSMEs from across India, spanning manufacturing, services, and trading sectors. It gauges MSMEs’ evaluations of their current business conditions and future expectations on 22 parameters, ranging from business performance to labor availability, job creation, capacity enhancement, financial access, cost of funds, and ease of doing business. The survey included 77 cities (Tier 1, 2, and 3) and 66 villages throughout India, ensuring a diverse representation of MSME perspectives, according to an official SIDBI statement.
In releasing the report, SIDBI Chairman and Managing Director Manoj Mittal stated: “SIDBI has consistently recognized the immense contribution of MSMEs to India’s growth narrative and is dedicated to advancing the sector through both financial and non-financial initiatives.”
