A recent survey conducted by the Small Industries Development Bank of India (SIDBI) has revealed encouraging news for domestic manufacturers, with more than 50% of MSMEs in the manufacturing sector reporting a rise in sales during the first quarter of FY 2025–26. However, the study also points to growing challenges for export-oriented MSMEs, particularly due to increased tariffs and global trade barriers.
Domestic Market Shows Resilience
The SIDBI report, which covered over 1,000 small and medium enterprises across various sectors, found that a steady demand recovery, coupled with supportive policies and digital adoption, contributed to improved performance. Sectors such as textiles, machinery, auto components, and chemical manufacturing led the growth trend.
Additionally, the survey highlights that nearly 40% of MSMEs have increased their production capacity, indicating confidence in market stability and demand forecasts.
Exporters Face Tariff Troubles
On the flip side, MSME exporters expressed concerns about rising import duties and trade restrictions in key global markets. The report noted that a significant share of exporters witnessed stagnation or decline in orders, particularly in sectors like engineering goods, leather, and apparel. These businesses are calling for urgent policy intervention to remain globally competitive.
India Advocacy’s View
While the domestic outlook is promising, exporters must be prepared for a complex regulatory landscape involving tariffs, compliance documentation, and bilateral trade adjustments.
At India Advocacy, we assist MSMEs with export documentation, tariff analysis, and legal strategies to mitigate cross-border challenges.
Whether you’re scaling your MSME or navigating export risks, our legal and compliance experts are here to support your growth journey.
