MSME activity index Sumpoorn reveals slower momentum in Feb

The MSME economic activity index Sumpoorn, established by the Small Industries Development Bank of India (SIDBI) and Jocata, showed there was a contraction in the sales activity from this segment fin February.

The index aims to support MSME stakeholders—financial institutions, policymakers, economists, and researchers—in guiding development and credit initiatives. SIDBI is one of the leading financial institutions focused on the credit needs of MSMEs, and Jocata is a subsidiary of Billdesk, specialised in digital lending.

According to a statement, the Jocata Sumpoorn was at 0.58 in February, moving down from 0.60 in January, indicating that the sales activity of credit-seeking MSMEs has stayed in the phase of mild expansion, albeit with a contraction compared to the previous index.

Small businesses have been reporting a mild pace of growth in sales over the past year. In fact, a breakthrough appears to remain a challenge as some macro-indicators are also recording similar slower growth, the statement noted.

This has been largely due to slower GST collections, drop in core sector growth, broad-based decline in sales of all categories of vehicles, and dip in merchandise exports. Capex project completions marked a four-year low, worth only Rs 4.7 lakh crore in 2024-25, nearly half of the value completed in FY24. While small businesses are looking for a turnaround in the year ahead, the outlook remains one of cautious optimism, as global uncertainties abound, the statement said.

The Jocata Sumpoorn Index is a high-frequency, data-driven measure of MSME sales activity that provides a fact-based assessment of financial inclusion and economic trends for MSMEs. This MSME-specific high-frequency indicator reflects the state of MSMEs in the country.

(The copy was updated for context.)