Ratings firm CRISIL(Credit Rating Information Services of India Limited) and Small Industries Development Bank of India (SIDBI) have signed a Memorandum of Understanding (MoU) to launch CriSidEx, a sentiment Index for Micro, Small and Medium Enterprises (MSME).
More Information about CriSidEx:
This index will provide insights into employment, business environment and foreign trade trends in the MSME sector.
- It is to be noted that currently, relevant and actionable data on Micro, Small and Medium Enterprises (MSME) in India comes with a significant lag, which cannot be used effectively to assess the ground situation in MSME ecosystem.
- CriSidEx will fill this lag as it will be compiled on basis of real-time, ground-level information procured directly from the MSMEs.
- Information gathering for compiling CriSidEx will be done through a sample survey which will cover over 1,000 MSMEs. A structured questionnaire will be used to ensure consistency in methodology and capture information without significant deviations.
- The sample of the survey will have representation based on size, geography and nature of business.
- The results of the survey and the index levels will be published at quarterly interval. The first of these will be published in January 2018.
CriSidEx – Utility:
CriSidEx will not only be useful for government and MSMEs, but also for regulators, trade bodies, banks as well as financial analysts.
- As it will capture sentiment on various business parameters such as the business situation, capacity utilisation, order book and margins, it will also prove to be useful in forecasting the business environment.
- The index will also highlight potential challenges and changes in production cycles and will thereby help in improving market efficiencies.
Quick Facts about CRISIL and SIDBI:
|Headquarters||Mumbai, Maharashtra||Lucknow, Uttar Pradesh|