On MSME Day, as we reflect on the theme ‘The Future Generation of MSMEs’ with its focus on human centered entrepreneurship in an AI driven economy, we celebrate the backbone of India’s growth, enterprises that drive innovation, employment, and regional progress. MSMEs contribute nearly 30% to India’s GDP and support over 110 million livelihoods, making them central to the nation’s growth story.

Progressive government initiatives such as Udyam registration, enhanced credit access, and digital public infrastructure are accelerating the formalisation and resilience of this sector. However, rising risks including climate volatility and evolving supply chain disruptions underscore the need for stronger, future ready protection frameworks.

General Insurance must evolve into a proactive growth enabler for MSMEs, helping them scale with confidence in an increasingly uncertain world. It is no longer just about protection, but about anticipating risks, enabling faster recovery, and supporting sustainable growth.

At IndusInd General Insurance, we are committed to delivering simple, affordable, and customer centric solutions powered by technology and insight to support MSMEs at every stage of their journey. Strengthening MSMEs is not just an economic imperative, it is key to building a resilient, self-reliant, and future ready Bharat.

The SME Business Activity Index (SME-BAI) rose to 58.9 during October–December 2025, up from 58.3 in the previous quarter, remaining well above the neutral threshold of 50, he said.

He added, the improvement reflects stronger new orders, stable production levels, improved employment conditions, easing supplier delivery timelines, and higher inventory restocking in anticipation of future demand. The rise in new orders are in line with a year-on-year increase in consumer durable output as per the Index of Industrial Production during the same period, strengthening signs of demand recovery.

The SME Business Outlook Index (SME-BOI) for January–March 2026 increased marginally to 60.8, suggesting cautious approach due to global uncertainty. Nearly half of respondents expect business activity to remain unchanged in the near term, however, the percentage anticipating improvement has increased compared to Round 2. Hiring intentions show gradual improvement, and a majority of respondents expect higher capital expenditure, indicating confidence in medium-term growth prospects, he said.

Union Budget FY2027: Expected Impact on SMEs

Expectations from the Union Budget FY2027 are a key factor supporting the positive outlook. Continued emphasis on public capital expenditure, is expected to support infrastructure-linked SME demand, particularly in agriculture and allied manufacturing sectors. Enhanced credit support measures, and reduced borrowing costs are likely to strengthen SMEs investment planning, with potential upside to the SME Business Outlook Index in subsequent quarters, he said.

Continued export support measures are expected to bolster new orders for manufacturing SMEs, while investments in digital infrastructure and supply-chain capabilities are anticipated to improve market access, productivity, and employment generation.

Dr. Ranjeet Mehta, CEO and Secretary General, PHDCCI, stated that the survey underscores the need for targeted incentives, enhanced R&D support, and robust development frameworks to accelerate technology adoption among SMEs. He further emphasized that timely enforcement of the 45-day payment norm for MSMEs, a review of quality control orders impacting machinery imports, rising energy costs, and the increasing impact of climate change on input prices necessitate the design and introduction of new financial hedging instruments.

The objective of the program was to strengthen existing relationships with MSME customers across the South Delhi Region and to engage with new MSME enterprises. The program was inaugurated by Smt. Mini T.M., Chief General Manager & Zonal Head, New Delhi Zone, and facilitated by Shri M.V.S. Sudhakar, Deputy General Manager – Business Development, New Delhi Zone, and Shri Samir Kumar Ojha, Deputy General Manager & Regional Head, South Delhi Region.

Speaking on the occasion, Smt. Mini TM, Chief General Manager & Zonal Head, New Delhi Zone said, “Our MSME Outreach Program is a strategic initiative to connect Micro, Small, and Medium Enterprises with the formal banking system, enhancing their access to tailored financial products. It is our firm belief that by fostering deeper engagement and building lasting relationships, we can empower these MSME enterprises to thrive and unlock their full potential.”

The event witnessed enthusiastic participation from MSME stakeholders, entrepreneurs, and senior officials of the Bank, including the Deputy Regional Head, South Delhi Region, and branch managers.

The South Delhi Region, comprising 47 branches across New Delhi, contributed approximately 36% to the total MSME business of New Delhi Zone as of 31st March 2025, highlighting the region’s vital role in driving MSME growth.