In the vibrant industrial landscape of Tamil Nadu, Micro, Small and Medium Enterprises (MSMEs) stand as the linchpin, driving economic growth and innovation. Yet, as the Lok Sabha elections loom, these critical players are rallying for relief and reforms to navigate a decade marred by crises including natural disasters, policy changes, and the global pandemic.
A Decade of Challenges
Tamil Nadu’s MSME sector has weathered a storm of challenges over the past ten years. The 2015 Chennai floods, demonetisation, the rollout of GST, the COVID-19 pandemic, and the recent Cyclone Michaung have all posed significant hurdles. These events have not only tested the resilience of MSMEs but also highlighted systemic vulnerabilities that need urgent redress.
Voices Unheard
C.K. Mohan, President of the Tamilnadu Small and Tiny Industries Association (Tanstia), has brought attention to the long-standing neglect of MSMEs, particularly their lack of representation on the National Board for MSMEs. This absence of a voice has hampered their ability to effectively communicate grievances and seek targeted solutions. Additionally, Mohan has identified inaccuracies in the state’s database for manufacturing industries, proposing collaboration with the Tamil Nadu Generation and Distribution Corporation Limited to ensure accurate representation and aid.
Demand for Relief and Reforms
In light of the devastation caused by recent floods and Cyclone Michaung, Tamil Nadu MSME leaders are seeking relief from the National Disaster Response Fund. The Ambattur Industrial Estate Manufacturers Association (AIEMA), representing over 2,000 units, is advocating for a lasting solution to the estate’s chronic flooding issues during monsoon seasons. Moreover, AIEMA President G. Aravind is calling for the establishment of a new industrial estate to accommodate business expansion and future industrial demands.
In Coimbatore, the focus is on taxation and ease of doing business. V. Thirugnanam, President of the Coimbatore District Small Industries Association, has made a plea for lowering GST rates for job-working units to the minimum 5% slab and extending the overdue MSME loans classification as non-performing assets from 90 to 180 days.
Infrastructure and Industrial Growth
Infrastructure woes continue to plague industrial estates throughout Tamil Nadu, with perennial flooding in the Kakkalur Industrial Estate and a pressing need for road improvements and infrastructure development in southern regions. These challenges underscore the necessity for strategic investment in infrastructure to bolster the growth and sustainability of MSMEs.
Also read: MSME Minister Unveils Tamil Nadu Incubator Maturity Model Report
Awaiting Decisive Action
As election campaigns gain momentum, the MSME sector in Tamil Nadu looks toward political parties for decisive action. The sector’s demands encompass not just immediate relief but also long-term strategic reforms that will provide the necessary impetus for growth, innovation, and resilience. The coming Lok Sabha elections present a critical opportunity for political leaders to address the grievances of this vital sector and chart a course for a more prosperous and sustainable industrial future in Tamil Nadu.