SIDBI Unveils Eighth Round of MSME Outlook Survey for July-September 2026
Mumbai: Business confidence among India’s micro, small and medium enterprises (MSMEs) improved in July–September 2026, reversing the moderation seen over the previous four quarters, according to the eighth edition of the MSME Outlook Survey released by the Small Industries Development Bank of India (SIDBI). The MSME Business Confidence Index (M-BCI) rose to 60.4 from 59.3 in the previous quarter. Values above 50 indicate expansion.
The survey points to sustained optimism about the months ahead. The MSME Business Expectations Index (M-BEI) is projected at 61.7 for October–December 2026 and is forecast to rise further to 62.2 for July–September 2027, indicating positive expectations for future business prospects.
The improvement in confidence was broad-based, with manufacturing, trading and services all recording gains in Q2 FY2026–27. The Manufacturing M-BCI rose to 61.0, the Services M-BCI to 61.3 and the Trading M-BCI to 57.5, reflecting improving business conditions across the MSME ecosystem.
Sales sentiment strengthened across sectors in Round 8 of the survey, with around 43% of manufacturing firms and 45% of services enterprises reporting positive sales-growth sentiment. Trading sentiment remained relatively subdued, with 38% of firms reporting revenue growth.
Access to finance and working capital remained stable or improved for most MSMEs. During Q2 FY2026–27, 47% of manufacturing enterprises and 44% of services enterprises reported improved access to overall finance. Improvements in working-capital access were reported mainly by businesses in the trading sector.
Overall, an average of 49% of MSMEs reported improved business conditions, highlighting the sector’s continued confidence and resilience despite a challenging external environment. This resilience comes amid ongoing pressure on margins due to input costs and competitive conditions.
The survey also indicated an improvement in skilled-labour availability across sectors during the quarter. In manufacturing, the share of firms expecting better availability of skilled labour is projected to increase from 25% currently to 40% over the next year.
