Overview
- CPA Australia’s Asia‑Pacific Small Business Survey, released Thursday, May 28, found 80% of Indian small businesses grew in 2025 and 87% expect their firms to expand in 2026.
- Rising costs were the top concern for firms, with 42% naming higher expenses as their biggest challenge and material prices the leading pressure for a third straight year.
- Manufacturing and export-focused firms face new volatility from geopolitical tensions since March that have pushed up energy and logistics bills and created uncertain order pipelines.
- Digital adoption and AI are driving productivity, with 89% of firms earning more than 10% of revenue from digital payments, 74% from e-commerce, AI investment rising from 26% to 36%, and 41% using AI tools for business advice.
- MSMEs increased hiring and finance activity in 2025—52% added staff and four in five sought external funding—so sustained growth will depend on cost control, easier access to credit and stronger cyber defences after rising cyber incidents disrupted operations.