Arun Jaitley in a bid to boost the environment for MSMEs has launched CriSidEx, the first sentiment index in India for micro and small enterprises or MSEs. The index has been jointly developed by the rating agency CRISIL and Small Industries Development Bank of India (SIDBI).
CriSidEx is a composite index based on a diffusion index of 8 parameters and measures MSE business sentiment on a scale of 0 (extremely negative) to 200 (extremely positive).
The novel sentiment index will include two indices; one in relation to the survey quarter and the other for the next quarter as and when the trend after few survey rounds sets in. Thus, offering independent time series data.
The Finance Minister in his keynote address on the launch said, "The health of MSME sector is extremely vital to the economy and with the number of steps taken by the government in the past two years, there is an increased integration of MSME sector into the formal economy."
"Issues of concern for this sector regularly come to the notice of the policymakers itself and I see great value in this index as the series of data and sentiments it'll show", says Jaitley.
Based on the index, first report was released which took into account qualitative responses of 1,100 MSEs that include some 550 manufacturing concerns and the rest 550 service sector entities.
The first CriSidEx reading stood at 107 that indicated mildly favourable sentiment during the October-December period in which the survey was done.
In its Budget 2018, government supported MSMEs with a cut in corporate tax rate for companies with upto Rs. 250 crore turnover annually to 25%. An allocation to the tune of Rs3,794 crore was earmarked additionally for MSMEs in a bid to extend credit support, capital as well as interest subsidy.
Also, an allocation of Rs3 trillion was made under the Pradhan Mantri Mudra Yojana or Mudra scheme for the fiscal year 2018-19.