MSMEs Poised for Growth: Expansion, Sustainability, and Optimism on the Rise

A SIDBI survey indicates that 37% of MSMEs plan capacity expansions, while 40% implement green technologies. Despite global uncertainties and tariff challenges, these enterprises continue to exhibit growth, with improved sales and profitability expectations for Q4 FY25. Credit access remains a concern, although optimism persists for future improvements.

A recent survey by the Small Industries Development Bank of India (SIDBI) reveals impressive growth intentions among Micro, Small, and Medium Enterprises (MSMEs). According to the report, approximately 37% of businesses are planning to expand their capacity during the current period.

The report highlights encouraging trends in capital expenditure, with the same percentage of MSMEs planning additional investments over the next year. Furthermore, 40% of these enterprises in the manufacturing and service sectors are implementing sustainable technologies like solar panels and e-vehicles, underscoring a growing commitment to environmental responsibility.

Addressing the unveiling of the report, SIDBI's Chairman, Manoj Mittal, praised the resilience of MSMEs in the face of global uncertainties and trade barriers. Despite challenges, these enterprises demonstrate pro-growth sentiments, planning increased capital expenditure and employment, alongside embracing sustainable technologies. Economic indicators like the Composite M-BCI for Q4 FY25, which stands at 60.82, reflect a healthier business environment, improving from the previous quarter's 58.30.

(With inputs from agencies.)