MSMEs in India to focus on capacity expansion: CII
A majority of micro, small and medium enterprises will focus on capacity expansion and modernisation even as they expect a rise in turnover in the next six months, a CII survey has said.
By PTI |
NEW DELHI: A majority of micro, small and medium enterprises will focus on capacity expansion and modernisation even as they expect a rise in turnover in the next six months, a CII survey has said.
"For a majority of MSMEs, capacity expansion, new market initiatives and modernisation will assume top priority in the future," CII's 19th Business Outlook Survey on 'General Business Prospects' for MSMEs said.
In the survey, around 84 per cent of the respondents expected growth in their turnover. Projection for the next six months reveal that 49 per cent of the respondents foresee an increase in inventory level, while only 9 per cent anticipated a decline.
The survey, conducted to analyse future trends, projections, capital investment, production growth, employment and capacity utilisation, covered a broad spectrum of industry groups and activities of the MSME industry across the country.
Highlighting the factors that could limit the growth of the sector, the survey revealed that MSMEs faced a threat from domestic and international competition as well as decline in export demand.
"Higher cost of funds, lack of working capital finance and plant capacity are also reasons that will hinder growth of the sector," it said.
However, 60 per cent of the respondents expressed optimism over the general business scenario, while 33 per cent did not foresee any significant change in the same. Seven per cent felt there would be a downtrend in business as compared to the previous year.
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