Micro And Small Enterprises’ Sentiment Moderates In Fourth Quarter
An employee, left, uses an angle grinder (Photographer: Dhiraj Singh/Bloomberg)  

Micro And Small Enterprises’ Sentiment Moderates In Fourth Quarter


India’s micro and small enterprises saw a moderation in sentiment in January-March quarter, according to a Crisil survey.

For the fourth quarter, the Crisidex score was at 122, lower than the 128 seen in October-December 2018, but marginally up from 121 a year ago. Crisidex is a sentiment index for MSEs that indicates the current state and expected outlook on the sector every quarter based on a survey.

“On a year-on-year basis, MSEs operating in the leather and leather goods, chemicals, pharmaceuticals, IT or ITeS, and human resources segments reported a noticeable increase in positive sentiment, while those into gems and jewellery, textiles, auto components and healthcare had a relatively subdued outing,” Small Industries Development Bank of India’s Chairman and Managing Director Mohammad Mustafa said in a Crisil release.

The sentiment in the March quarter was shaped by a host of factors such as slowdown in auto sales leading to inventory pile-up and production cuts by the automobile industry, Crisil’s Chief Operating Officer Amish Mehta said.

Other factors that affected the sentiment included slower tendering or awarding ahead of elections and regulations impacting logistics. Among manufacturing MSEs, 42 percent reported a good survey quarter, which is on a par with the quarter immediately preceding.

Nearly, 39 percent of services providers reported a good quarter compared with 41 percent in the previous quarter. The number, however, was better than the 29 percent in the same period a year ago.

The sentiment about the business situation is expected to remain positive in the April-June 2019 quarter, the survey said.

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