Small Businesses Navigate Challenges with Strategic Recalibration

The ASSOCHAM and Dun & Bradstreet Small Business Confidence Index for Q3 2025 reports a decline in small business sentiment in India. Despite challenges, SMEs are focusing on strategic recalibration, leveraging export opportunities, and managing costs to maintain resilience and stability amid changing global market dynamics.

ASSOCHAM, in collaboration with Dun & Bradstreet, has published its Small Business Confidence Index for the July-September 2025 quarter, reflecting a dip in optimism among small and medium enterprises (SMEs) in India. The Index fell to 79.2, indicating a period of strategic adjustment as these businesses adapt to shifting global conditions, including geopolitical uncertainties and evolving trade policies.

However, India's domestic economy remains robust, with cooling inflation, potential monetary easing, and a promising monsoon season setting the stage for recovery. The Index shows that SMEs are employing strategic recalibration, focusing on cost management, workforce stability, and selective investments, highlighting a long-term vision of resilience and competitiveness.

Despite a slight moderation in domestic orders, SMEs are proactively pursuing export opportunities, with 56% reporting growth in new export orders. Stability in selling prices and easing input cost pressures suggest margin predictability, while steady employment and inventory levels reflect cautious optimism. This strategic agility is seen as crucial for maintaining resilience amid ongoing global trade uncertainties.

(With inputs from agencies.)