India’s Micro, Small and Medium Enterprises (MSME) sector has continued to demonstrate resilience despite global economic uncertainties, but sustained growth will depend heavily on timely policy support and a stable business environment, according to a recent report.
The study, released by the PHD Chamber of Commerce and Industry, highlights that MSMEs have maintained steady expansion, supported by consistent demand and production levels. However, the pace of growth has slightly moderated due to evolving global headwinds.
Key indicators show that business activity in the MSME manufacturing sector remains in the expansion zone, reflecting continued economic momentum. At the same time, the outlook for upcoming quarters remains positive, though slightly softer compared to previous periods, indicating cautious optimism among businesses.
The report notes that new orders and stable production levels have been major drivers of growth, with around 37% of firms reporting an increase in demand. Employment levels and supply chains have also remained largely stable, suggesting that businesses are adopting a balanced and cautious approach amid global uncertainties.
Looking ahead, investment sentiment appears encouraging, with nearly half of the surveyed firms planning to increase capital expenditure. However, hiring trends remain measured, as companies focus on efficiency and cost management while navigating external challenges.
Experts emphasise that while the sector has shown strong adaptability, policy support—especially in areas like credit access, infrastructure, and ease of doing business—will be crucial to sustain growth momentum.
The MSME sector plays a critical role in India’s economy, contributing significantly to GDP, exports, and employment. Its continued resilience amid global disruptions underscores its importance as a key driver of inclusive and sustainable economic growth.
