Hotline: 1800 102 2007
Hotline: 1800 102 2007
Search Business Opportunities
2011-07-18

MSME buoyancy dips

MSME buoyancy dips due to fear of high interest rates and inflation

MSME buoyancy dips

High inflation and rising fear that the Reserve Bank may further hike key rates making borrowing costlier for the industry has dented the confidence of MSMEs.

 
The CII Business Confidence Index (BCI) for MSMEs for the second quarter stood at 57.2 points which represents a decline of 4.9 points from the previous April-June quarter and a decline of 8.4 percentage points on a (Y-o-Y) basis.

This decline represents the biggest (and sharp) decline in the last 12 months, that the index has suffered, CII said.

The industry body added that the fall in MSME confidence is attributable to continuous and persistently high inflation and the anticipation that the interest rates may be further hiked by the Central bank.

Other issues such as a credit rating system which does not offer any advantage to the MSMEs as they have to deal with delayed payments which leave their financial options stretched, have also resulted in their confidence spiraling South.

The survey shows that services sector enterprises, on an average are expecting to perform better than their industrial counterparts. BCI value of MSMEs in services stood at 61.3 compared to 53.1 for MSMEs in Industrial sector. Out of 14 mentioned variables, the survey found that services have done better in 13 parameters.


Related opportunities
  • Others Food Service
    About Us: Mumbai’s Most Popular Traditional Snack Brand.By India’s Leading Manufacture..
    Locations looking for expansion Mumbai
    Establishment year 1977
    Franchising Launch Date 2018
    Investment size
    Space required 400
    Franchise Outlets -NA-
    Franchise Type -NA-
    Headquater Mumbai Mumbai
  • Other Vocational Training
    About Us: Kadambari Sangeet Mahavidyalaya is the complete school of music..
    Locations looking for expansion Uttar pradesh
    Establishment year 2010
    Franchising Launch Date 2013
    Investment size Rs. 20lac - 30lac
    Space required 2000
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Ghaziabad Uttar pradesh
  • Quick Service Restaurants
    About Us: Inspired by their sojourns across various countries in South..
    Locations looking for expansion Delhi
    Establishment year 2016
    Franchising Launch Date 2019
    Investment size Rs. 20lac - 30lac
    Space required 700
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
  • Tea And Coffee Chain
    About Us: Bean Here is a famous brand of Allahabad which..
    Locations looking for expansion Uttar pradesh
    Establishment year 2014
    Franchising Launch Date 2018
    Investment size Rs. 2lac - 5lac
    Space required 200
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater ALLAHABAD Uttar pradesh
Insta-Subscribe to
The Franchising World
Magazine
tfw-80x109
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
email
mobile
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities

Free Advice - Ask Our Experts

pincode
ads ads ads ads