New Delhi, April 20: Despite global challenges, India’s MSME manufacturing sector remains robust. However, timely policy support and a stable global environment are crucial for sustaining this growth, according to the PHD Chamber of Commerce and Industry (PHDCCI).
On Monday, PHDCCI released the fourth edition of its SME Market Sentiment Index (SMESI), which covers the performance of the MSME sector from January to March 2026 and the outlook for the upcoming quarter.
The report indicates that while growth is maintained, the pace has slightly slowed due to changing global conditions.
According to the survey, the SME Business Activity Index (SME-BAI) stood at 56.5 in the March quarter, down from 58.9 in the previous quarter, yet still signaling expansion.
Similarly, the SME Business Outlook Index (SME-BOI) for April to June 2026 was recorded at 58.7, a slight decrease from 60.7, but still reflecting positive sentiment.
The report highlights that the primary driver of business growth is the increase in new orders and stability in production. Approximately 37% of companies reported a rise in new orders, leading to increased production levels.
Moreover, there has been little change in employment and supply chain delivery times, indicating that companies are adopting a cautious and balanced strategy.
Looking ahead to the upcoming quarter (April-June), companies remain optimistic. About 37% expect their business to grow further, while nearly half believe conditions will remain stable.
On the investment front, a positive outlook is also evident. Approximately 47% of companies plan to increase capital expenditure (capex), driven by expectations of future demand.
However, companies are still cautious regarding hiring, gradually increasing recruitment. This reflects their efforts to balance costs and operations amid uncertain global conditions.
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