MSMEs’ market conditions are anticipated to improve in the next quarter, driven by stronger domestic demand and supportive policies such as the cut in GST on a wide range of products and services, SIDBI said in a report on Monday.

The services sector, in particular, is showing robust expectations for future growth.

Meanwhile, the composite M-BCI for the July-September 2025 quarter declined to 61.64 from 63.75 in the previous quarter, indicating a modest dip in confidence. At the same time, sector-wise, manufacturing and services maintained steady optimism, while trading showed more volatility.

However, the composite M-BEI projects a positive outlook, with the composite index expected to rise to 62.26 in the next quarter and further to 66.57 in the quarter one year ahead (July-September,

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