India&rsquo;s micro, small and medium enterprises &ldquo;remains resilient despite global geopolitical uncertainties" and the sector&rsquo;s credit exposure rose to about Rs 46 lakh crore in April 2026, a report said on Tuesday.
The report from credit bureau CRIF High Mark said<a href="https://www.mid-day.com/mumbai/mumbai-news/article/mumbai-to-benefit-from-rail-mumbai-metro-and-msme-push-in-union-budget-2026-bjp-mla-ameet-satam-23614700" rel="nofollow"> MSMEs' resilience is supported by strong domestic demand</a>, policy support, and diversified credit participation.
The overall credit exposure in the sector rose 12.8 per cent year‑on‑year, supported by asset‑quality gains, diversified geographic and sectoral participation.
However, early impact of global geopolitical uncertainties into domestic credit supply in certain sectors and borrower segment is evident through a slowdown in credit growth, with portfolio expansion and active loan growth moderating significantly compared to last year
Between December 2025 and April 2026, POS growth slowed to 3.1 per cent compared to 9.7 per cent in the prior year, while active loans declined by 3.5 per cent.
The report highlighted that manufacturing and trade which together account for more than 60 per cent of point‑of‑sale share showed the first signs of stress, with manufacturing growth moderating to 4.3 per cent from 10.4 per cent last year.
Sectors such as shipping, transport, food processing and auto ancillaries<a href="https://www.mid-day.com/mumbai/mumbai-news/article/mumbai-property-registrations-hit-14-year-high-in-may-2026-driven-by-redevelopment-activity-23633027" rel="nofollow"> recorded moderate POS declines </a>amid global uncertainties.
Early-stage delinquencies in manufacturing also rose slightly from 1.6 per cent to 1.8 per cent between March-April 2026. However, these movements may also reflect cyclical factors and merit ongoing observation to gauge their persistence.
Lenders have adopted a more cautious approach, with credit growth slowing across PSU banks, private banks, and NBFCs, reflecting heightened risk sensitivity amid global uncertainty.
Early warning indicators are beginning to surface, including rising delinquency levels in the micro segment, manufacturing sector, PSU bank portfolios, and cash credit facilities.
Working capital utilisation remains elevated, suggesting businesses are relying more heavily on existing credit lines to manage operational and supply-chain pressures.
The impact remains selective rather than systemic, with portfolio quality largely stable and stress concentrated in specific sectors and borrower segments rather than across the<a href="https://www.mid-day.com/buzzfeed/article/pfrda-in-collaboration-with-startupflora-pushes-pension-awareness-for-msmes-as-national-priority-8865" rel="nofollow"> broader MSME ecosystem</a>, the report noted.
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India`s MSME sector continues to remain resilient despite global geopolitical uncertainties, with total credit exposure rising 12.8 per cent year-on-year 

India's MSME's remains resilient as credit exposure grows 12.8 per cent despite global tensions: Report

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The report from credit bureau CRIF High Mark said MSMEs' resilience is supported by strong domestic demand, policy support, and diversified credit participation

India's MSME sector remains resilient as credit exposure grows 12.8 per cent

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