New Delhi, Apr 20 (BNP): India’s MSME manufacturing sector recorded expansion during the January–March period, although the pace of growth showed signs of moderation amid geopolitical uncertainties in West Asia, according to a recent survey by PHD Chamber of Commerce and Industry.

The survey indicates that while overall business activity in the MSME segment remained positive, external pressures—particularly disruptions linked to the West Asia crisis—have slightly dampened growth momentum.

Rising input costs, supply chain concerns, and global market volatility were identified as key challenges affecting sentiment in the sector. Despite these headwinds, manufacturers continued to report expansion in production and order activity, reflecting underlying resilience in domestic demand.

Industry stakeholders noted that MSMEs are adapting to external shocks by focusing on efficiency, diversification of supply sources, and greater reliance on domestic markets.

The report further highlights that sustained government support, credit availability, and policy interventions have helped cushion the impact of global uncertainties on small and medium enterprises.

Overall, the survey suggests that while growth in the MSME manufacturing sector continues, external geopolitical tensions have introduced caution into business outlooks for the near term.