India Small And Medium Firms Poised For Robust Growth In April-June Quarter: Report

New Delhi: There has been a good momentum in trade process in India’s small and medium enterprises sector for January-March quarter (This autumn) of FY2025, in comparison to earlier quarter Q3, and a powerful expansion outlook is anticipated for the following quarter (Q1 FY2026), in line with the SME Market Sentiment Index launched by means of trade chamber PHDCCI on Tuesday. 

The survey is in keeping with 3,000 pan-India SME companies throughout more than a few production devices. “The government’s proactive and effective initiatives – including credit support, technological assistance, infrastructure development, and skill training – have significantly transformed small and medium-sized enterprises (SMEs) into a vibrant and dynamic sector of the Indian economy. These efforts have fostered entrepreneurship and created numerous employment opportunities,” mentioned PHDCCI President Hemant Jain.

To seize the SME marketplace sentiment, two indices, the SME Business Activity Index (SME-BAI) and SME Business Outlook Index (SME-BOI) have been computed, he mentioned. Both those indices will function a treasured software for policymakers, business stakeholders, and buyers to make knowledgeable choices, Jain added.

The price of each indices levels from 0 to 100, the place 50 is the bottom price that separates growth from contraction. The SME Business Activity Index (SME-BAI) recorded a powerful 57.7 issues, indicating important growth in production actions in comparison to the former quarter. This expansion is pushed by means of a powerful New Orders Index of 71.7, reflecting prime call for and a powerful paintings pipeline, in conjunction with an Output/Production Index of 66.7, pointing to trade actions gaining momentum, he mentioned.

The Employment Index stood stable at 55.0, aligning with the emerging financial process, whilst the Inventories Index of 60.0 means that companies are actively restocking to fulfill expected call for, the PHDCCI leader mentioned.

“We appreciate the policy reforms and initiatives undertaken by the government to support the SME sector. These will go a long way to transform the MSME landscape,” he mentioned.

SME Business Outlook Index (SME-BOI) which supplies the outlook for the following quarter stood at 60.3, signaling robust self assurance within the economic system. Notably, 67 in keeping with cent of respondents be expecting an development in trade process, 47 in keeping with cent wait for greater hiring, and 53 in keeping with cent plan to spice up capital expenditure, Jain added.

PHDCCI Secretary General and CEO Ranjeet Mehta emphasized that those indices had been created to fulfil the will for a competent, data-driven software to evaluate the well being and outlook of India’s SME production sector, which is a spine to the Indian economic system. “The continuous handholding by the government has resulted in the formalisation of more than 5 crore MSMEs, contributing significantly to exports, creating millions of jobs and fostering inclusive development. Going forward, to fulfil our endeavour to promote the growth of the SME sector, we will add indices related to exports and the services market,” he mentioned.

“Our findings highlight a positive outlook for growth, job creation, and investment in the SME manufacturing sector,” PHDCCI Chief Economist Sanat Kumar mentioned.