New Delhi’s small business landscape is showing remarkable resilience. The latest SIDBI Outlook Survey, released on Tuesday, reveals a year-on-year uptick in the MSME Business Confidence Index (M-BCI) for the October-December 2025 quarter. Clocking in at 60.8, the index underscores how domestic economic strengths are buffering against international headwinds.
Working capital availability and overall finance access topped the list of improvements. Sales sentiment and the broader business environment also brightened, fueled by robust demand and steady operations. This optimism persists even as global uncertainties loom large.
MSME exporters are eyeing government lifelines like RBI’s Trade Relief measures and the Credit Guarantee Scheme for Exporters (CGSE). An impressive 43% plan to tap into Trade Relief, 46% aim for CGSE, and 37% intend to leverage both. These schemes are proving vital in navigating export challenges.
The fifth edition of SIDBI’s quarterly MSME Outlook Survey paints a comprehensive picture of the sector’s current health and future trajectory. It highlights how new labor codes offer MSMEs a chance to formalize operations and bolster structures, though 34-36% anticipate short-term compliance costs. Many call for clearer guidelines (16-21%) and enhanced training (17-19%) to smooth the transition.
Sector-wise, manufacturing led the charge with M-BCI jumping from 62.9 to 64.1. Trading and services saw slight dips, but the overall Business Expectation Index (M-BEI) signals positivity, projecting 63.7 next quarter and 65.0 in a year. Manufacturing firms are particularly bullish on sales growth.
Working capital optimism surged, especially in manufacturing where 46% reported positive access—up from 35%. Total finance sentiment hit 47%. Services showed modest gains, while trading saw mixed results but stronger overall finance confidence.
This stability on a quarter-on-quarter basis, driven by manufacturing momentum, points to a promising path ahead for India’s MSME backbone.