Any analysis done by Mint today on micro data (company level) shows how the SMEs are suffering from fund crunch. For quite some time now (and more recently here) I have been talking about how the Indian SMEs have been chocked off funds. This can be also inferred when one looks at PMI manufacturing data (which is generally quite ok) and India's IP number (which is generally quite dismal). These companies are indeed feeling the heat as they have been hit by a doulbe whammy viz falling demand and high inflation & high interest rates. Banks are quite weary of lending to them given the increasing risk perception. In fact, within the priority sector lending, the banks are preferring to increase thier exposure to agriculture sector rather than to the SMEs while keeping up with their priority sector requirement.
I have been an avid blogger. However, regulatory requirements, post my new assignment, has resulted in me taking a break. Wait till I am back.