Survey shows 80% of Indian small businesses expanded in 2025, outpacing regional peers amid rising cost pressures.
Indian small enterprises achieved their strongest growth in 2025 since the Covid-19 pandemic, with 80% reporting expansion, surpassing the Asia-Pacific average of 63%. The findings come from a survey of 4,166 companies across 11 markets, including 513 in India, conducted in late 2025.
Confidence remains high, with 87% of Indian respondents expecting further growth in 2026 and 84% anticipating an improving local economy. However, 42% cited rising costs, particularly materials, as their top challenge for the third consecutive year.
Hiring activity also accelerated, with 52% of firms increasing staff in 2025 and 69% planning to add headcount in 2026. Government policies and trade agreements were credited for supporting the sector’s resilience and export ambitions.