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Small Business Confidence Surges 12.5% in India
22 Dec, 2025
Summary
- Small business confidence index rose sharply by 12.5% quarter-over-quarter.
- 75% expect higher sales, 77% anticipate increased domestic orders.
- Profitability expectations surged 35 percentage points to 71%.
The ASSOCHAM D & B Small Business Confidence Index for the Oct-Dec 2025 quarter has reached 89.1, marking a significant 12.5% quarter-over-quarter increase. This rise reflects growing optimism among small businesses, driven by adaptive strategies, strong domestic demand, and improved credit conditions, indicating a proactive approach to growth and efficiency.
Survey data reveals strong forward-looking sentiment, with 75% of respondents anticipating higher sales volumes and 77% expecting increased domestic orders. Profitability expectations have also surged, with 71% anticipating higher net profits, a 35 percentage point increase from the previous quarter. Investment plans are firming up, with 62% intending to increase fixed capital investments.
This resurgence is supported by government initiatives like improved credit access for MSMEs and infrastructure spending. While hiring sentiment is cautious, the focus has shifted towards automation and productivity-led expansion. Despite global uncertainties, India's small businesses are demonstrating resilience and a strategic pivot towards long-term competitiveness and value creation.
