Export-led demand growth for SMEs in Q2 2022: Survey

New Delhi, May 26 (KNN) The small and medium enterprises (SMEs) in second quarter of 2022 is likely to a growth led by exports with an estimated increase in their net sales and new export orders at 77 and 86, as per a latest survey.

Based on the confidence shown by majority of India’s small business executives SMEs will see an overall improvement in the Q2 2022 SMEs, said the ASSOCHAM-D&B SBCI survey

Further the ASSOCHAM-Dun & Bradstreet Small Business Confidence Index (SBCI), which measures the level of optimism of small and medium businesses on key business parameters such as sales, employment, prices, inventory and investment, stood at 87 in Q2 2022.

An index value above 50 signals an improvement or increase in the forthcoming quarter compared to the same quarter in the previous year. All indicators suggest a likely expansion in economic growth during Q2 2022. 

Commenting on the findings, Avinash Gupta, MD, Dun & Bradstreet India said, “The high level of optimism on export orders could be a result of the CEPA that India signed with the UAE and the Economic Cooperation and Trade Agreement with Australia, as well as the prospects of similar agreements with the UK and Canada in 2022 and 2023.”

“These agreements are expected to boost India’s export of agricultural products, footwear, gem & jewellery, leather, and textiles. Supply chain disruptions caused by the Russia-Ukraine crisis has improved India’s export prospects of iron ore, iron & steel products, and wheat," he added.  (KNN Bureau)