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MSME Sector Shows Strong Business Confidence in Q3 FY2025: SIDBI Survey

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SIDBI's MSME Outlook Survey offers valuable insights into the sector's evolving dynamics, reinforcing the crucial role of MSMEs in India's economic growth. With strong business confidence and an optimistic outlook,
The MSME sector in India displayed robust business confidence in the third quarter of FY2025, according to a survey by the Small Industries Development Bank of India (SIDBI). The survey highlighted a significant improvement in the Business Confidence Index (BCI), which rose to 100.9 from 99.1 in the previous quarter, indicating optimism among micro, small, and medium enterprises. Key factors contributing to this confidence include better capacity utilization, increased demand, and improved credit availability. The survey also noted that 70% of MSMEs reported stable or increased demand, and there was a notable rise in the adoption of digital technologies. However, challenges such as rising input costs and labor shortages persist, though the overall sentiment remains positive with expectations of continued growth and support from government initiatives.

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