Mumbai: Small and Medium Enterprises (SMEs) in India are optimistic about economic growth in the country, with almost 79 per cent expecting it to accelerate, says an HSBC Asia-Pacific Small Business Confidence Survey.

India emerged as the most optimistic country in the survey, which was conducted in nine countries in the Asia Pacific, including Hong Kong, Singapore, Taiwan, Korea, Malaysia, Australia, Indonesia and China. Around 1,800 SMEs were surveyed in the first quarter of 2007.

The SMEs surveyed in India had an annual sales turnover of less than $11 million. While 36 per cent of Indian SMEs said they would make more investments in their business this year, 64 per cent said that they had no such plans.

Puneet Chaddha, Head, Commercial Banking, India HSBC, said: "SME investments were mainly for increasing capacity or hiring new talent. What is significant is that SMEs are not cutting down their production."

Chaddha expects SMEs in India to sustain a growth rate of 25-30 per cent this year. "The SME sector accounts for 50 per cent of the exports and is the second largest employment provider, next to agriculture," Chaddha said.