MSME manufacturing grows in early 2026 as West Asia crisis slows expansion and raises costs

Shipping delays are squeezing growth despite new orders

India’s MSME manufacturing sector expanded in the Jan–March period, but growth cooled as the West Asia crisis disrupted trade. Longer shipping times and higher costs affected momentum even as new orders and production rose. Hiring stayed largely steady, and businesses expect the next quarter to remain positive but cautious, hinging on timely policy support for sustained growth.