This post was originally published on The Economic Times
New Delhi: The PHD Chamber of Commerce and Industry (PHDCCI) has released the findings of the SME Market Sentiment Index (SMESI) – Round 4, reflecting the performance of India’s manufacturing MSME sector for January–March 2026 and outlook for April–June 2026.
The SMESI, which comprises of the SME Business Activity Index (SME-BAI) and the SME Business Outlook Index (SME-BOI), is based on a quarterly survey of 3,000 manufacturing MSMEs across India and serves as a leading indicator of economic activity.
Key highlights
– SME Business Activity Index stood at 56.5 in Q4 FY26, indicating continued expansion, though moderating from 58.9 in the previous quarter.
– SME Business Outlook Index registered 58.7, reflecting a positive but softer outlook for Q1 FY27 (April–June 2026) with 60.7 in the previous quarter.
– Expansion in business activity continues to be driven by new orders and production, though at a slower pace.
– Employment and supplier delivery timelines remained largely unchanged, indicating cautious hiring and stable logistics conditions domestically.
SME Business Activity (Jan–Mar 2026)
The manufacturing MSME sector remained in expansion territory during the quarter, supported by an improvement in demand conditions. Around 37% of firms reported higher new orders,
— Read the rest of this post, which was originally published on The Economic Times.
