Crisil, SIDBI jointly launch India’s first MSE sentiment index 'CriSidEx’
05 Feb 2018
Credit rating agency Crisil and the Small Industries Development Bank of India (SIDBI) have jointly launched CriSidEx, the country's first sentiment index for micro and small enterprises (MSEs).
Union minister of finance and corporate affairs Arun Jaitley announced the launch of CriSidEx at a function jointly organised by by CRISIL and SIDBI on Saturday.
CriSidEx is a composite index based on a diffusion index of eight parameters and measures MSE business sentiment on a scale of 0 (extremely negative ) to 200 (extremely positive). The parametric feedback was captured through a survey of 1,100 MSEs in November-December, says a corporate affairs ministry release.
CriSidEx will have two indices - one for the 'survey quarter' and another for the 'next quarter' once a trend emerges after few rounds of the survey, providing independent time series data.
CriSidEx readings will flag potential headwinds and changes in production cycles and thus help improve market efficiencies, the release said, adding that by capturing the sentiment of exporters and importers, it will also offer actionable indicators on foreign trade.
Delivering the keynote address, the finance minister said that 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 increased integration of MSME sector into formal economy. He also highlighted the important role played by the MSME sector in the creation of jobs.
''MSME sector is backbone of the economy. It is one of the largest employer in the country and with the vast population where employment either in government or in the large industry itself has limited potential. This is one sector where people not only exhibit their entrepreneurial skills, become part of large value chains but also become job creators in the process. And that is the reason why a bulk of the jobs in manufacturing, trading have been created in this particular sector,'' Jaitley said.
Jaitley said the consolidation of the economy following the series of major structural reforms in the last 2 years will also be led by the MSME sector.