29/08/2012
MSME companies must be extremely careful now in India . We are entering a very bad phase of recession . Sales in August is down by 25-40% for most MSMEs in the ICT business. Payments are coming in much slower than before. Defaults are taking place more frequently. Government agencies like IT, Service Tax, Sales Tax are hounding companies with huge demands. Overall cost of operations have increased significantly while margins are getting squeezed. I spoke to several MSME owners and to many auditors and most of them seem to agree that they have never seen this market situation earlier in India where everything seems to be an uphill task. Bankers also agree that manyof their customers who have taken Large Term Loans are finding it difficult to repay their installments. What are your personal views ?