80% SMEs upbeat about Q3 as demand picks up, reveals survey

New Delhi, Aug 25 (KNN) With the revival of demand about 80 per cent SMEs in India are anticipating a jump in domestic order books in the third quarter of 2022, said a survey by Associated Chambers of Commerce and Industry of India (ASSOCHAM) and D&B on Wednesday.

According to the Business Confidence Index survey small businesses with improved confidence are looking to enhance their capacity utilisation to 60 per cent in the third quarter vis-a-vis 55 per cent in the second quarter

In view of new investments SMEs’ optimism was largely intact as 75 per cent expect an increase in their fixed capital investment in comparison to 77 per cent in Q2.

Although the Reserve Bank of India (RBI) has been tightening the monetary policy compelled by inflation, SMEs do not find any concern with regard to the availability of credit, said the survey.

Deepak Sood, Secretary General ASSOCHAM said it is a good thing that the latest RBI credit policy statement gave an assurance that enough liquidity would remain in the system.

He hoped banks would continue to meet the working capital needs of SMEs ahead of the festive season this year.

Despite increase in interest rates in the recent months and its likelihood of continuation credit access in Q3 is expected to be normal by 79 per cent of the respondents which is one percentage point higher than the trendline for the preceding quarter.  (KNN Bureau)