Summary:

According to CPA Australia's report, India's small company sector achieved its largest postpandemic growth in 2025, making it one of the Asia-Pacific region's top performers. Compared to the regional average of 63%, around 80% of Indian small firms reported growth. With 87% anticipating company growth in 2026 and 84% confident about the local economy, confidence remained high. Growth was fuelled by innovation, better customer experiences, and technology adoption; employment also rose, with 52% of businesses recruiting more staff and 69% aiming to expand their workforces. With significant income contributions from e-commerce and digital payments, digitalisation remained crucial. Investment in and use of AI increased dramatically. However, in 2025, growing operational expenses and an increase in cybersecurity incidents become significant obstacles for MSMEs nationwide.

Source: IBEF

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