Small and medium sized businesses are found to be the biggest contributors for economy of India. A larger number of employment opportunities are provided by SMEs. Several programmes have been conducted by Indian government in order to increase the small business sector.
According to the HSBC Small Business Confidence Monitor, there was a slip in confidence of Indian SMEs particularly with respect to investment. An overall confidence among SMEs globally increased from 111 to 118. It was found to be 138 for Turkey, 132 for the Middle East and 121 for Greater China. However, the index for India was found to decrease from 132 in the last quarter of 2009 to 121. This is because there had been a 18 point drop in the share of SMEs that planned to increase investment.
Emerging markets were found to increase the confidence in SMEs and the confidence index was 122. But the confidence index accounting for advanced markets was 115. However, there was a rise in confidence measures in developed markets since the end of 2009.
The HSBC index also reported some estimations about expansion of workforce, maintenance of staffing levels, capital expenditure and others.