A recent SIDBI outlook survey reveals that the MSME Business Confidence Index (M-BCI) for the October-December 2025 quarter has shown year-on-year improvement at both composite and sectoral levels. The survey highlights a positive trend, indicating a stronger domestic macroeconomic environment supporting the MSME sector, despite global risks.
The survey points out that MSME exporters are showing interest in policy support measures such as the RBI Trade Relief measures and Credit Guarantee Scheme for Exporters (CGSE). Around 43% of respondents plan to utilize RBI’s Trade Relief, while 46% intend to adopt CGSE, with approximately 37% considering both options.
According to the fifth edition of the SIDBI “MSME Outlook Survey,” the new Labour Codes present an opportunity for MSMEs to enhance their operational frameworks and promote formalization. While some firms anticipate a short-term increase in compliance costs, targeted support in specific areas like clearer guidance on provisions and enhanced training initiatives could facilitate a smoother transition.
The survey also notes that MSME confidence remains stable, particularly in the manufacturing sector, which is witnessing a positive outlook. The composite M-BCI for October-December 2025 is estimated at 60.8, with manufacturing showing improved sentiment reaching 64.1. However, trading and services sectors experienced a slight moderation.
