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80% of MSMEs Expect Stronger Festive Season in 2026
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CNBC TV18•19-10-2026, 21:43
80% of MSMEs Expect Stronger Festive Season in 2026
- •A report by NeoGrowth reveals that 80 percent of MSMEs expect stronger business performance during the 2026 festive season, with nearly two in five anticipating revenue growth of over 50 percent.
- •Consumer spending intent is surging, with 77 percent of shoppers planning to spend more this festive season, led by fashion, jewellery, consumer durables, and home décor.
- •To meet high demand, 55 percent of MSMEs have stocked up on inventory, 31 percent are introducing new product lines, and 25 percent are expanding operational setups.
- •Working capital demand has spiked, with 66 percent of MSMEs requiring additional credit, led by businesses in cities like Hyderabad and Delhi.
- •Digital adoption is widespread, as 82 percent of shoppers expect to pay digitally, 74 percent of MSMEs use digital payment infrastructure, and AI tool integration is on the rise.
Key Questions Answered
According to a report published by digital MSME lender NeoGrowth titled 'Festive Outlook 2026', 80% of micro, small, and medium enterprises (MSMEs) expect business performance to outperform last year during the festive season.
Fashion and jewellery led consumer spending priorities at 48%, followed closely by consumer durables and home décor at 46%, and travel and hospitality at 24%.
Two out of three MSMEs reported requiring additional credit to fund festive operations, with businesses in Hyderabad at 71% and Delhi at 68% recording the country's highest working-capital requirements.
