New Delhi, April 20 -- India's MSME manufacturing sector continued to remain in expansion mode during the January-March 2026 quarter, although growth momentum showed signs of moderation due to external challenges, particularly arising from the West Asia crisis, according to the SME Market Sentiment Index (SMESI) - Round 4 released by PHD Chamber of Commerce and Industry.

As per the findings, the SME Business Activity Index stood at 56.5 in Q4 FY26, indicating continued expansion, though it moderated from 58.9 recorded in the previous quarter. Similarly, the SME Business Outlook Index registered 58.7 for Q1 FY27 (April-June 2026), lower than 60.7 in the previous quarter, reflecting a positive but softer outlook.

The SMESI, based on a qua...