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New Delhi : Union Minister for Finance and Corporate Affairs Arun Jaitley on February 3, 2018, launched ‘CriSidEx’, India’s first sentiment index for micro and small enterprises ( MSEs) developed jointly by Credit Rating Information Service of India Limited (CRISIL) & Small Industries Development Bank of India (SIDBI) here.
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 parametric feedback was captured through a survey of 1,100 MSEs in November –December, according to a PIB release.
CriSidEx will have 2 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.
The crucial benefit of CriSidEx is that its readings will flag potential headwinds and changes in production cycles and thus help improve market efficiencies. And by capturing the sentiment of exporters and importers, it will also offer actionable indicators on foreign trade.
Delivering his keynote address, Jaitley 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 2 years, there is increased integration of MSME sector into formal economy.
Highlighting significant role played by the MSME Sector in the creation of jobs, Jaitley said, “ MSME sector is backbone of the economy. It is one of the largest employer in the country. 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.” Having gone through the series of major structural reforms in the last 2 years, this is now phase for consolidation as far as economy is concerned. And this phase of consolidation will also be led by this MSME Sector, Jaitley emphasized .
S C Garg, Secretary Department of Economic Affairs, Rajiv Kumar, Secretary, Department of Financial Services, Arun Kumar Panda, Secretary, MSME, Mohammad Mustafa, Chairman and Managing Director SIDBI, and Ms Ashu Suyash, Managing Director & CEO, CRISIL Ltd, highlighted the importance of this CriSidEx at this juncture for the MSME sector.