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CII Business Outlook Survey for MSMEs sounds 'optimistic'

Jul '07
The CII's 19th Business Outlook Survey (2nd in the 2007 series) on"General Business Prospects" for Micro, Small & Medium Enterprises (MSMEs) was undertaken to gauge the impact of various economic parameters on the MSMEs.

The purpose of this survey was to analyse the future trends & projections, related to capital investment, production growth, employment, capacity utilisation, interest rates, turnover etc in the MSMEs sector.

This survey covers a broad spectrum of industry groups and activities of the Micro, Small and Medium industry members all over the country.

Current Business Prospects:
According to the 2nd in the 2007 series of the Confederation of Indian Industry (CII) Business Outlook Survey for MSMEs, 60% of the respondents are optimistic about the general business scenario, 33% expect the business situation to remain the same with a continued trend for low to moderate demand while only 7% of the respondents feel a downtrend in the general business scenario in comparison with previous year.

Capital Investment:
As per CII Business Outlook Survey, 91% of the surveyed respondents plan to authorize more capital investment in comparison with previous year.

Out of these (91%), 20% of the respondents plan to authorize between 5-10% more capital investment, 34% of the surveyed respondents expect to authorize 10-20% more capital investment, 22 % of the respondents expect to authorize 20-50% more capital investment and 15% of the respondents expect to authorize capital investment more than 50%.

For the remainder of the 9 % of the surveyed respondents who plan to authorize less capital investment via-a-vis the previous year, only 3% of the respondents expect to reduce their capital investment between 5-10%, while remaining 6% of respondents are not planning to do so.

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Confederation of Indian Industry

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