Indian SMEs Ride High On Strong Demand And Easier Financing: Assocham

The findings from the Index, which tracks the optimism of small and medium enterprises in India, indicate a slight decline in small business sentiment

The Index reflects a resilient but cautious sentiment among small businesses

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Overall optimism among the small and medium enterprises (SMEs) in India continues to hold steady due to positive factors like strong domestic demand and better financing access as monetary conditions ease, an Assocham report showed on Wednesday.

The country’s leading business chamber, along with Dun & Bradstreet, a leading global provider of business decisioning data and analytics, released its ‘Small Business Confidence Index’ for April-June 2025 quarter.

The findings from the Index, which tracks the optimism of small and medium enterprises in India, indicate a slight decline in small business sentiment, with the confidence index edging down by 1.8 per cent compared to the previous quarter, settling at 105.4.

This suggests a more cautious outlook among small business executives.

However, the index remains notably strong — up 6 per cent year-over-year and well above the long-term average.

“It is encouraging to note the underlying strength of domestic demand, improved hiring intentions and expectations of better financing access as monetary conditions ease. Assocham remains committed to working closely with all stakeholders to create a conducive environment for economic prosperity,'' said Sanjay Nayar, Assocham President.

As the external environment becomes more uncertain, sustaining confidence will hinge on how effectively businesses can adapt, by managing input costs, preserving margins, and aligning investment strategies with evolving market conditions.

Strengthening domestic enablers while mitigating external vulnerabilities will be crucial for maintaining the growth momentum of India’s small business sector in the quarters ahead, said the report.

“The small business segment continues to be a vital driver of the Indian economy. In order for them to thrive, better financing prospects, policy continuity and predictability, and convergent efforts of stakeholders will help them navigate short-term headwinds and achieve sustained growth,” said Assocham Secretary General, Manish Singhal.

The Index reflects a resilient but cautious sentiment among small businesses.

“While small businesses are leveraging domestic tailwinds, margin pressures from rising costs and softer global demand are prompting a more conservative approach to pricing and inventory management. Sustained recovery will hinge on businesses maintaining operational agility and adapting to evolving global trade dynamics,” explained Avinash Gupta, Managing Director, Dun & Bradstreet India.

(This report has been published as part of the auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by ABP Live.)