Interviews
CII Business Outlook Survey for MSMEs
21 Apr '08
4 min read
Alternate Sources of Finance:
As per survey findings, 10% of the surveyed respondents of Small and Medium Industry are using capital markets for alternate source of finance, 12% of respondents are using credit guarantee scheme, 8% of respondents are using venture capital financing and factoring services for alternate source of finance where as 62 % respondents have not responded to this question.
Credit Guarantee Fund:
On the credit Guarantee front, 52 percent respondents see the credit guarantee fund launched by SIDBI for guaranteeing loans upto Rs 50 lakhs as a substitute for collateral security, 38 percent respondents are not sure about it, 10 percent respondents have not responded to this question while majority 82 % respondents expect the limit of Rs 50 lakhs is not sufficient on this.
Credit Rating:
As per Business Outlook Survey, 32 percent of respondent companies are rated by an external credit rating agency (out of these 32 percent of surveyed respondents, 4 percent of respondents availed lower collateral requirements, 11 percent of respondents availed reduced interest rate, 7 percent of the respondents availed benefits of simplified lending norms, while majority 10 percent of respondents have not responded to this question.) however, the 62 percent of the respondent companies have not been rated by an external agency while only 6 percent respondents have not responded to this question.
Future Outlook:
35 % respondents feel that the Indian Small and Medium Industry are still struggling to find its feet on ground in next two years ( by 2010) time, 49% of respondents expect to the small industry to graduate to the medium industry by 2015 while 34 % respondents foresee them overtaking the large companies in the country by 2020.
Competitiveness of the Indian Small Industry:
According to Survey, 66 % respondents feel that promotion of SME cluster development programme is the key to enhance the competitiveness of the Indian Small Industry, 64% respondents feel that facilitating business development would enhance the competitiveness of the Indian Small Industry while 57% respondents expect promoting manufacturing innovation as a key to scale up demand.
Proactively, the CII National SME Forum had adapted the theme for the current year 2007-08 as "Building MSMEs, Building India" With the goal- over a five year cycle - to move the Indian SMEs among developed group of SMEs around the globe, the CII National SME Forum is focussing on development of competitive policy framework and adopting best practices.
The CII Business outlook survey for MSME covers a broad spectrum of industry groups and activities of the Micro, small and medium industry members all over the country.
As per survey findings, 10% of the surveyed respondents of Small and Medium Industry are using capital markets for alternate source of finance, 12% of respondents are using credit guarantee scheme, 8% of respondents are using venture capital financing and factoring services for alternate source of finance where as 62 % respondents have not responded to this question.
Credit Guarantee Fund:
On the credit Guarantee front, 52 percent respondents see the credit guarantee fund launched by SIDBI for guaranteeing loans upto Rs 50 lakhs as a substitute for collateral security, 38 percent respondents are not sure about it, 10 percent respondents have not responded to this question while majority 82 % respondents expect the limit of Rs 50 lakhs is not sufficient on this.
Credit Rating:
As per Business Outlook Survey, 32 percent of respondent companies are rated by an external credit rating agency (out of these 32 percent of surveyed respondents, 4 percent of respondents availed lower collateral requirements, 11 percent of respondents availed reduced interest rate, 7 percent of the respondents availed benefits of simplified lending norms, while majority 10 percent of respondents have not responded to this question.) however, the 62 percent of the respondent companies have not been rated by an external agency while only 6 percent respondents have not responded to this question.
Future Outlook:
35 % respondents feel that the Indian Small and Medium Industry are still struggling to find its feet on ground in next two years ( by 2010) time, 49% of respondents expect to the small industry to graduate to the medium industry by 2015 while 34 % respondents foresee them overtaking the large companies in the country by 2020.
Competitiveness of the Indian Small Industry:
According to Survey, 66 % respondents feel that promotion of SME cluster development programme is the key to enhance the competitiveness of the Indian Small Industry, 64% respondents feel that facilitating business development would enhance the competitiveness of the Indian Small Industry while 57% respondents expect promoting manufacturing innovation as a key to scale up demand.
Proactively, the CII National SME Forum had adapted the theme for the current year 2007-08 as "Building MSMEs, Building India" With the goal- over a five year cycle - to move the Indian SMEs among developed group of SMEs around the globe, the CII National SME Forum is focussing on development of competitive policy framework and adopting best practices.
The CII Business outlook survey for MSME covers a broad spectrum of industry groups and activities of the Micro, small and medium industry members all over the country.
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