Broader picture remains positive, says Singhal
The findings of the ASSOCHAM–Dun & Bradstreet Small Business Confidence Index for Apr-Jun 2025 quarter reflected a phase of cautious optimism among India’s small businesses, especially due to global uncertainties and supply chain disruptions https://www.nseindia.com/.
However, it is encouraging to note the underlying strength of domestic demand, improved hiring intentions and expectations of better financing access as monetary conditions ease, said ASSOCHAM President Sanjay Nayar.
“ASSOCHAM remains committed to working closely with all stakeholders to create a conducive environment for economic prosperity,” he assured on release the index findings on 13 June.
“This edition of the Small Business Confidence Index highlights the nuanced sentiments among small businesses. A modest decline in the Confidence Index reflects a measured approach adopted by small businesses amid global trade challenges,” said ASSOCHAM Secretary-General Manish Singhal https://www.bseindia.com/.
“The broader picture, however, remains positive, with strong domestic fundamentals. The small business segment continues to be a vital driver of the Indian economy,” he added.
“In order for them to thrive, better financing prospects, policy continuity and predictability, and convergent efforts of stakeholders will help them navigate short-term headwinds and achieve sustained growth,” Singhal assured.
“The ASSOCHAM–D&B Small Business Confidence Index for Apr-Jun 2025 quarter reflects a resilient but cautious sentiment among small businesses. Steady domestic orders, and an improved hiring outlook point to underlying strength supported by robust domestic demand,” added Avinash Gupta, Managing Director, Dun & Bradstreet India.
“However, the sharp decline in export order expectations amid global trade tensions, particularly following US tariff announcements, highlights external vulnerabilities. While small businesses are leveraging domestic tailwinds, margin pressures from rising costs and softer global demand are prompting a more conservative approach to pricing and inventory management. Sustained recovery will hinge on businesses maintaining operational agility and adapting to evolving global trade dynamics,” said Gupta https://www.commerce.gov.in/.
Small businesses are standing at a critical crossroads, balancing robust domestic momentum against intensifying global headwinds, as reflected in the ASSOCHAM–D&B SBCI Index, according to Dr Arun Singh, Global Chief Economist, Dun & Bradstreet.
The uptick in domestic orders, hiring sentiment, and capacity utilization reflects confidence supported by resilient consumption trends and a stable policy environment. However, the sharp fall in export order expectations, combined with weakening pricing power and more cautious investment and credit outlooks, shows firms are recalibrating strategies amid trade risks and global demand uncertainty, he elaborated https://sbi.com.in/.
Despite these headwinds, Dun & Bradstreet data highlights India’s advantage in sectors such as specialty chemicals, electrical machinery, and home textiles.
“Looking ahead, India–US trade agreements will be pivotal; varying tariffs could reshape export dynamics. To remain resilient, small businesses must sharpen domestic focus, optimize capital allocation, and adapt swiftly to shifting global trade policies,” said Dr Singh.
As the external environment becomes more uncertain, sustaining confidence will hinge on how effectively businesses can adapt, by managing input costs, preserving margins, and aligning investment strategies with evolving market conditions.
“Strengthening domestic enablers while mitigating external vulnerabilities will be crucial for maintaining the growth momentum of India’s small business sector in the quarters ahead,” he stressed. Fiinews.com
