Manufacturing and Services Drive Growth Upswing
January 2026 PMI surged to 59.5, signaling a broad-based recovery led by manufacturing and supported by resilient services activity. Strong domestic demand and improving order books indicate that MSMEs are emerging as key growth drivers in the current cycle.
Export Orders Rise Despite Global Headwinds
New export orders gained momentum even amid tariff pressures, reflecting greater adaptability and cost discipline among MSME exporters. With input costs rising only marginally, firms reported margin expansion of 2–3%, easing profitability stress seen in previous quarters.
Why Policy Support Matters Now
The PMI data reinforces the urgency of sustained credit flows, stable interest rates, and accelerated infrastructure spending. MSMEs are prepared to scale hiring and production if upcoming policy measures—especially Budget allocations—support working capital and capex needs.
Sectoral Trends and Forward Outlook
Manufacturing PMI stood at 60.2, with capital goods and consumer durables showing the strongest momentum. Services PMI at 58.9 benefited from a tourism rebound and improving consumer spending. MSMEs in these sectors are collectively planning ₹50,000 crore in capital investments, contingent on rate cuts and financing support.
MSME Growth Outlook
Export-oriented MSMEs expect up to 15% growth in foreign exchange earnings over the coming months, positioning the sector as a key contributor to economic recovery and employment generation.
