Despite the rising cost of raw materials, difficult global markets and stiff international competition exports from the micro, small and medium (MSME) sector is expected to rise during the remaining m
Despite the rising cost of raw materials, difficult global markets and stiff international competition exports from the micro, small and medium (MSME) sector is expected to rise during the remaining months of the fiscal 2009-10, according to CII's (Confederation of Indian Industry) MSME Outlook Survey.
The survey registered an increase in the volume of export of 42 per cent respondents, while 9 per cent said there was no change and another 49 per cent revealed decline.
Regarding the volume of export over the next six months of the fiscal, 50 per cent respondents expect to see an increase in their export volumes, 15 per cent expect no change while 35 per cent expect a decline.
According to CII, hurdles in export growth over the next six months for the MSMEs could be the rising cost of raw material, international competition, price competitiveness and the delays in payments.
Europe, North America, South East Asia, Middle East Asia and Far East Asia are the best markets for the domestic MSMEs and the major growth is expected in the European and North American markets.
They survey also found that 40 per cent of the respondents had not availed of the benefit of the interest rate subvention, as proposed by Reserve Bank of India in the economic stimulus package for the SMEs. However, 36 per cent had availed of the benefits, while 24 per cent were not even aware of it.