New Delhi, June 2: India’s micro, small and medium enterprises (MSMEs) continue to demonstrate resilience despite ongoing global geopolitical challenges, supported by strong domestic demand, policy support, and steady credit availability, according to a recent report.
The report noted that total credit exposure to the MSME sector rose to nearly ₹46 lakh crore in April 2026, reflecting sustained confidence in the segment and its crucial role in driving economic growth, employment, and entrepreneurship.
Credit exposure increased by 12.8 per cent year-on-year, aided by improving asset quality and broader participation across sectors and regions. The findings suggest that while global uncertainties have begun to influence certain industries, the overall MSME ecosystem remains stable and well-positioned to navigate external headwinds.
However, the pace of credit growth has moderated compared to the previous year, indicating a more cautious lending environment. Manufacturing and trade sectors, which account for a significant share of MSME activity, have shown signs of slower growth amid evolving global conditions.
The report also highlighted that some industries, including transportation, food processing, and auto ancillaries, have experienced modest pressure due to global market volatility. At the same time, lenders have become more selective in extending credit, reflecting a focus on risk management.
Despite these challenges, the broader outlook for the sector remains positive. Portfolio quality has largely remained stable, and any emerging stress appears limited to specific segments rather than indicating a widespread slowdown.
Industry experts believe the resilience of India’s MSMEs continues to be underpinned by domestic economic activity, government support measures, and the sector’s ability to adapt to changing market conditions.