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Small firms still struggling with slowdown, says survey

Category :India Sub Category :National,Business
2009-07-26 00:00:00
   Views : 521

New Delhi, July 26 - A majority of small and medium enterprises (SMEs) in India are still struggling to cope with the global slowdown and remain unaware about the stimulus measures taken by the government to help them, says an industry survey.

'Ninety-four percent of the respondents reported that their overall business has been affected 'severely or moderately' due to the current economic slowdown,' said the survey conducted by the Federation of Indian Chambers of Commerce and Industry (FICCI).

FICCI said 116 SMEs manufacturing a diverse range of products from 20 locations across the country participated in the survey.

It said 73 percent of the firms did not know about any stimulus steps announced by the government to support their sector.

'This indicates a serious problem with information dissemination at the ground level,' said the report.

'A majority of those who were aware of the incentives indicated that these measures have not really enabled them to regain the business momentum. The interest subvention announced for SME exporters is not reaching the intended beneficiaries,' it added.

Though the government in the budget had set up a refinancing facility of Rs.




Author :Indo Asian News Service



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