Indian small enterprises posted their “strongest performance” in 2025 since the onset of Covid‑19, according to CPA Australia’s Asia‑Pacific Small Business Survey 2025/26.
The survey, which took place in November and December 2025, gathered responses from 4,166 companies with fewer than 20 employees across 11 Asia‑Pacific markets, including 513 from India.
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CPA Australia’s data showed that 80% of Indian small businesses grew in 2025, well above the regional average of 63%.
Additionally, some 87% of Indian respondents expect business growth in 2026 and 84% foresee an expanding local economy.
However, rising costs remain a major hurdle. Approximately 42% of Indian small businesses identified increasing costs as their main challenge in 2025, with materials costs flagged as the most damaging pressure for the third year running.
CPA Australia Fellow and CPA Australia spokesperson in India Aniket Talati said: “Supported by government policies aimed at encouraging more structured and growth-oriented enterprises and unlocking key export markets through free trade agreements to offset tariff impacts, Indian MSMEs [micro, small and medium enterprises] demonstrated impressive dynamism and confidence last year, and have entered 2026 with strong expansion ambitions.”
The survey found that 52% of Indian small businesses increased staff in 2025, while 69% plan to raise headcount in 2026.
The ownership profile is relatively young, with 56% of Indian small business owners under 40, compared with an Asia‑Pacific average of 38%.
In 2025, 89% of Indian small businesses generated more than 10% of their revenue through digital payment platforms, the highest share in the region.
In addition, 74% earned more than 10% of revenue from e‑commerce and nine in ten used social media for business purposes.
The survey showed that AI investment also gained momentum. The proportion of Indian small companies investing in AI rose from 26% to 36% in 2025.
