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Global headwinds to slow down growth for ITeS MSMEs
Business Standard
|September 20, 2025
The micro, small, and medium enterprise (MSME) segment, which accounts for 30-40 per cent revenue of the information technology-enabled services (ITeS) industry, is expected to see revenue in rupee terms grow slower year-on-year (Yo-Y) at 7-9 per cent in 2025-26 (FY26), weighed down by weak client sentiment and tariff-related risks.
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Slower deal closure will also be a dampener, though its impact will be limited given the largely non-discretionary nature of deals in this industry. In FY25, revenue grew an estimated 11 per cent in rupee terms to ₹4.4 trillion, supported by increased offshore workloads from cost-conscious global clients. Growth remained firm until the third quarter, and some impact of global headwinds was visible in the last mont
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