MUMBAI, India, March 11, 2025 /PRNewswire/ — ASSOCHAM along with Dun & Bradstreet, a leading global provider of business decisioning data and analytics, has released its Small Business Confidence Index for Q1 2025 which tracks the optimism of small and medium enterprises in India. The first quarter of the calendar year 2025 has begun on a note of optimism for India’s small businesses, pointing to early signs of recovery in most of the key metrics like sales and investment, as gauged by an ASSOCHAM-Dun & Bradstreet survey.
The Small Business Confidence Index (SBCI) for Q1 2025 stands at 107.3, marking an 18.4% q-o-q rise, signalling a cautious rebound in business sentiments. The report highlights improvements in sales, selling prices, and investment, alongside enhanced credit availability, pointing to early signs of recovery for small businesses. However, the gauge marginally dropped by 1% on y-o-y basis.
The report highlights improvements in sales, selling prices, and investment, alongside enhanced credit availability, pointing to early signs of recovery for small businesses.
“Early signs of recovery even in the midst of global trade uncertainties reflects inherent strength and resilience of Indian entrepreneurs. It is more heartening to see an uptick in confidence amongst small businesses, the backbone of the Indian economy,” said ASSOCHAM President Mr. Sanjay Nayar.
“With the RBI beginning the cycle of cut in the policy interest rates and visible signs of improvement in rural demand, we expect definite signs of growth momentum in 2025,” said Mr. Nayar.
According to the latest findings, sales volumes have increased by 1% y-o-y, pointing to some growth within the sector. However, sentiment around new domestic orders is weaker, with a 7-percentage point decline y-o-y. In contrast, export optimism has significantly improved, with a 60-percentage point increase in new export orders on a q-o-q basis and a 12-percentage point rise y-o-y, indicating stronger confidence in international markets. Profitability expectations have remained stable at levels seen in Q1 2024, underpinned by an anticipated 8% rise in selling prices, which is expected to help offset rising cost pressures. Meanwhile, moderating inflation has eased expectations for raw material costs, contributing to a more stable cost environment for small businesses.
“The ASSOCHAM D&B Small Business Confidence Index for Q1 2025 reflects a cautious yet improving outlook among small businesses. The uptick in sales, export orders and selling price expectations reflects early signs of recovery. However, subdued capacity utilization and hiring outlooks suggest that businesses are prioritizing operational resilience rather than rapid scale-up. Inventory management remains conservative, with firms maintaining lean stock levels to mitigate demand volatility. Looking ahead, the Union Budget 2025-26’s focus on supporting MSMEs through enhanced credit guarantees, tax rationalization, and improved trade facilitation is expected to reinforce business optimism and drive sustainable growth in both domestic and international markets,” said Mr. Avinash Gupta, Managing Director, Dun & Bradstreet India.
“In 2025, India’s economy faces slower growth, influenced by monetary easing and shifting fiscal policies. While small businesses show signs of recovery, the ASSOCHAM D&B Small Business Confidence Index for Q1 2025 reflects mixed results. Improvements in sales, prices, exports, and investments suggest gradual recovery, but capacity constraints and cautious hiring show businesses are prioritizing stability. Economic uncertainties and fluctuating demand remain concerns. The RBI rate cut, and expanded MSME credit guarantees aim to support liquidity and investment, while tax changes could boost consumption. Initiatives like ‘BharatTradeNet’ may enhance export competitiveness, supporting recovery,” said Dr. Arun Singh, Global Chief Economist, Dun & Bradstreet.
About ASSOCHAM:
ASSOCHAM initiated its endeavour of value creation for Indian industry in 1920. It was established by promoter Chambers, representing all regions of India. Having in its fold over 400 Chambers and Trade Associations and serving over 450,000 lakh members across India. ASSOCHAM has emerged as the fountainhead of Knowledge for Indian industry, which is all set to redefine the dynamics of growth and development in the Knowledge Based Economy. More information available on www.assocham.org
About Dun & Bradstreet:
Dun & Bradstreet, a leading global provider of business decisioning data and analytics, enables companies around the world to improve their business performance. Dun & Bradstreet’s Data Cloud fuels solutions and delivers insights that empower customers to accelerate revenue, lower cost, mitigate risk and transform their businesses. Since 1841, companies of every size have relied on Dun & Bradstreet to help them manage risk and reveal opportunity. For more information on Dun & Bradstreet, please visit www.dnb.com.
Dun & Bradstreet Information Services India Private Limited is headquartered in Mumbai and provides clients with data-driven products and technology-driven platforms to help them take faster and more accurate decisions across finance, risk, compliance, information technology and marketing. Working towards Government of India’s vision of creating an Atmanirbhar Bharat (Self-Reliant India) by supporting the Make in India initiative, Dun & Bradstreet India has a special focus on helping entrepreneurs enhance their visibility, increase their credibility, expand access to global markets, and identify potential customers & suppliers, while managing risk and opportunity.
India is also the home to Dun & Bradstreet Technology & Corporate Services LLP, which is the Global Capabilities Center (GCC) of Dun & Bradstreet supporting global technology delivery using cutting-edge technology. Located at Hyderabad, the GCC has a highly skilled workforce of over 500 employees, and focuses on enhanced productivity, economies of scale, consistent delivery processes and lower operating expenses.
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