The fact that the Indian economy is inching its way to recovery has been endorsed by the third quarter results. This upbeat mood has also been corroborated by the small and medium-sized enterprises (SMEs) in a recent HSBC survey. According to the Small Business Confidence Monitor, which gauges the six-month outlook of SMEs across the world, India is positive about the first half of 2010. In fact, for the second consecutive time, India posted the second highest index score of 132, up from 128 in 2009. The top slot was bagged by Vietnam.
This index ranges from 0 to 200. According to the survey, which was conducted in October-November 2009, 52 per cent of Indian SMEs expect the GDP to grow at its current pace in the next six months and 41 per cent anticipate a faster pace. In addition, 49 per cent are planning to increase capital expenditure. Things are looking up on the hiring front too. One-fourth of the respondents said that they plan to recruit and 71 per cent will maintain their current staff levels. This is significant as SMEs employ more than 60 per cent of the workforce, which means more recruitment. Also, SMEs doing well means more opportunities for investors in the small-cap space.