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Economy

The slowdown is real. But some pockets in tier II cities are showing signs of revival.

To assess the on-ground situation and the possibility of an uptick in economic demand, we undertook a four-city survey. The interactions suggest that most of the bottoming-out has happened and there is an improvement in private capital formation, driven by foreign companies — potentially Chinese and second-generation MSME entrepreneurs who are resilient and hungry for growth.
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18 Dec 2019 5 Mins Read 3 comments
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Shekhar Batra (name changed) runs an Indore-based SME, which deals in electronic-vehicle components. Looking to raise some money for his business, along with other options, he put two of his residential properties for sale. Given the negative market sentiment and the property cost — INR1 crore each — there was little hope that Batra’s move would succeed. However, to everyone’s
in the near term. “Demand is there, but due to a liquidity crunch we are going slow,” a cardboard manufacturer from Mumbai says, while a commercial paper-rolls maker says he has shifted his focus to recovery from debtors rather than sales growth. ( The author is a Sebi-registered independent research analyst. He can be reached here.)
Shekhar Batra (name changed) runs an Indore-based SME, which deals in electronic-vehicle components. Looking to raise some money for his business, along with other options, he put two of his residential properties for sale. Given the negative market sentiment and the property cost — INR1 crore each — there was little hope that Batra’s move would succeed. However, to everyone’s in the near term. “Demand is there, but due to a liquidity crunch we are going slow,” a cardboard manufacturer from Mumbai says, while a commercial paper-rolls maker says he has shifted his focus to recovery from debtors rather than sales growth. ( The author is a Sebi-registered independent research analyst. He can be reached here.)

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