The resurgence of growth witnessed in certain key sectors and pick-up in chief global economies have prompted SMEs in India to once again turn their focus towards greater capital investments, which they had to put on halt due to the global economic slowdown. This was further confirmed by the findings of a survey conducted by HSBC. The HSBC survey revealed that a large number of Indian SMEs across diverse verticals are planning to step-up their investment plans in the first half of 2010, on back of the rise in demand witnessed in their segments. Bullish about capex plans According to the survey findings, nearly 50% of the surveyed SME respondents showed confidence to undertake huge investments and revealed their plans to increase capital expenditures in the coming days as growth prospects for the near future look bright. â€Investments by SMEs, which had taken a major hit due to the recessionary pressures, are likely to come back on track in the first half of 2010. Higher growth in key sectors will prompt small firms to spend on technology upgradation, improving their competitiveness and raising their productivity to sustain the current growth,†said Anurag Kumar, executive in Tax Consultants, a small-sized investments advisory firm in Mumbai. HSBC Small Confidence survey, which witnessed participation from 6,000 SMEs spread across 20 regions, also showed that business confidence of Asian SMEs have bounced back to the pre-recession levels. â€Upward rise in business confidence among SMEs is a good sign as buoyant outlook will help them to set higher growth standards and achieve rapid development,†said Arun Samanto, proprietor of Snigdha Enterprises, a small-sized food product exporting unit in Kolkata. The HSBC survey was conducted in several countries, including Asia, the Middle East, Europe, North America and Latin America, among others to gauge the business sentiment and outlook of SMEs on key factors such as economic growth, capital investment plans and hiring.
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