India’s micro, small and medium enterprises (MSMEs) continue to display resilience even as business optimism eased modestly in the September quarter, according to the latest findings from the Small Industries Development Bank of India (SIDBI) and sector experts.

SIDBI’s fourth MSME Outlook Survey for July-September 2025 showed a dip in its Business Conditions Index (M-BCI) to 61.64 from 63.75 in the previous quarter, signalling slightly lower sentiment.

However, expectations for the coming quarters remained upbeat— the Business Expectations Index (M-BEI) is projected to climb to 66.57 by July–September 2026, reflecting MSMEs’ confidence in improving domestic demand and supportive policies such as the recent GST rate cuts.

Manufacturing and services firms maintained steady optimism, whil

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