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Mumbai: Despite deep rate cuts by the Reserve Bank, the micro, small and medium enterprises are still "cautious" about the future interest rate trends, a SIDBI survey has revealed.The MSME segment, which is widely called the backbone of the Indian economy, continued to be concerned about the availability of adequate credit as well, the survey for the quarter ending September has said.The survey said there are signs of easing of interest burden of MSMEs, particularly in manufacturing, where the share of those reporting increase in cost of finance or interest rates fell from 41 per cent to 33 per cent."However, expectations of elevated finance costs persist across sectors, reflecting cautious sentiment about future interest rate trends," it added.On the issue of credit availability, the survey said that the adequacy of available credit is still a concern among MSMEs.Live EventsAmid widespread concerns about sluggish growth in private capital expenditure, the small business segment has also said that the higher capacity utilisation is gradually leading to new capex among MSMEs, the survey said.Entities in the segment are also anticipating an improvement in the debtor realisation and feeling that the profitability will be stable going ahead.However, they flagged concerns on the availability of skilled labour, pointing out that this is a "structural challenge" despite the improvements that have happened.Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) Read More News oncredit availability MSMEsMSMEs interest ratesSIDBI surveyIndian economy MSMEsprivate capital expenditureskilled labor availabilitymanufacturing sector finance (Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online....moreless (You can now subscribe to our Economic Times WhatsApp channel)Read More News oncredit availability MSMEsMSMEs interest ratesSIDBI surveyIndian economy MSMEsprivate capital expenditureskilled labor availabilitymanufacturing sector finance(Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online....moreless
