Nearly 30-40 percent MSMEs Planning to Hire More, 45% Optimistic About 2025 Sales: SIDBI Survey
Nearly 30-40 percent MSMEs Planning to hire more: The Indian Micro, Small, and Medium Enterprises (MSME) sector is gearing up for a robust growth phase, with nearly 30-40% of MSMEs planning to expand their workforce and 45% expressing confidence in strong sales growth for 2025, according to the first-ever MSME Outlook Survey by the Small Industries Development Bank of India (SIDBI).
MSMEs Expect a Strong 2025, Hiring and Sales to Rise
The SIDBI survey, which analyzed MSME business sentiment for the October-December 2024 period, indicates that export optimism has increased significantly, climbing from 22% in Q4 2024 to 36% for the same period in 2025. This upward trend suggests that businesses are becoming more confident in global trade and demand.
The survey also revealed that MSMEs are optimistic about their order books, production levels, and selling prices, leading to greater confidence in their sales growth. The MSME Business Expectations Index recorded a reading of above 60 for the next four quarters, signaling a positive business sentiment until December 2025.
Government Support and Green Technology Adoption on the Rise
Government initiatives have played a significant role in boosting MSME confidence. The recent Union Budget 2024-25 identified the MSME sector as one of the four key growth engines of the Indian economy. Additionally, the Mutual Credit Guarantee Scheme, approved by the Centre, aims to improve credit access for MSME manufacturers. Under this scheme, loans of up to ₹100 crore for plant and machinery purchases will now receive 60% guarantee coverage, reducing risk for banks and improving funding availability.
Another significant trend observed in the survey is the shift towards green technology. Around 46% of MSMEs in the manufacturing sector have expressed their willingness to invest in greener and more sustainable technologies. This transition aligns with India’s long-term goal of achieving a greener economy and reducing its carbon footprint.
Challenges Remain: Labour Productivity and Skill Shortage a Concern
Despite the positive outlook, MSMEs continue to face certain challenges, particularly in terms of labour productivity and skilled workforce availability. According to the survey, 13% of MSMEs were dissatisfied with labour productivity, while 17% expressed concerns over the availability of skilled labour during October-December 2024. These concerns highlight the need for better training programs and skill development initiatives to meet industry demands.
Financial Performance and Key Ratios
The MSME sector’s financial performance has also been a key focus of the SIDBI survey. The following financial ratios provide insights into the health of these businesses:
| Financial Metric | Value |
|---|---|
| Revenue Growth (2025) | 45% of MSMEs expect an increase |
| Export Growth Projection | Increased from 22% to 36% |
| Workforce Expansion Plan | 30-40% MSMEs plan to hire more |
| Investment in Green Tech | 46% of manufacturing MSMEs |
| MSME Business Index Score | Above 60 for next four quarters |
| Credit Guarantee Scheme | ₹100 crore loan with 60% guarantee |
| Labour Productivity Concern | 13% MSMEs not satisfied |
| Skilled Labour Shortage | 17% MSMEs dissatisfied |
MSME Growth: A Bright Future Ahead
The MSME sector plays a crucial role in India’s economic growth, job creation, and exports. The rising optimism among MSMEs, coupled with strong policy support, is expected to drive higher sales, investments, and employment in the coming years.
With favorable government policies, increased export potential, and a growing focus on green technology, India’s MSMEs are well-positioned to contribute significantly to the country’s GDP and global trade competitiveness.
By leveraging these insights, the MSME sector looks set for a promising 2025, driven by growth, innovation, and sustainability.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.