Micro and small enterprises remain upbeat on growth prospects

Micro and small enterprises continue to remain optimistic about their business prospects. The CriSidEx Index, which measures sentiment among micro and small enterprises, rose to 121 in fourth quarter (Q4) of FY18, up from 107 in third quarter of FY17, reflecting a growing optimism among these firms over their business prospects. 

Manufacturing continued to do well, with 37% of companies surveyed saying they had a good quarter (Q4FY19), compared with 29% in the services sector. 

The index is based on a study carried out by CRISIL and Sidbi, which surveyed companies with a turnover of less than Rs 250 million. 

On the prospects in the first quarter (Q1) of FY19, 51% of companies surveyed in the manufacturing sector reported being positive about their business prospects. Similarly, 48% of respondents in the services sector were positive about their prospects in Q1FY19.

Within the manufacturing sector, respondents in engineering and capital goods, auto components, and chemical companies were most optimistic about their prospects, while sentiment in companies in labour-intensive sectors such as leather goods, gems and jewellery remained subdued. Within the services sector, IT/ITeS, traders, and health care providers showed a healthy showing in the January-March quarter.