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MSMEs Show Increased Confidence Despite Rising Input Costs: SIDBI
Sentiment: NeutralHigh Priority
What Happened?
India's MSMEs reported improved business confidence in July-September 2026, with manufacturing leading the optimism despite ongoing pressure from rising input costs, according to SIDBI.
Key points
- The MSME Business Confidence Index (M-BCI) rose to 60.4 in July-September 2026 from 59.3 in the previous quarter.
- Nearly half of the surveyed enterprises reported better business conditions, with 49% noting improvements.
- Manufacturing sector's M-BCI increased to 61.0, indicating strong sales sentiment.
- 43% of manufacturing firms reported positive sales growth during the quarter.
- The MSME Business Expectations Index (M-BEI) is projected at 61.7 for October-December 2026 and 62.2 for July-September 2027.
Key insights
- Increased confidence among MSMEs may lead to higher investment in the sector.
- Positive sales growth in manufacturing could boost overall economic performance.
- Sustained optimism in business expectations may encourage job creation in the MSME sector.
Why it matters
The rise in MSME confidence could indicate resilience in the Indian economy despite rising costs.
Source
Times of India
