MSMEs are a cornerstone of employment, exports, innovation and regional development in Tamil Nadu, and strengthening them is key to reaching a $1.5 trillion economy, said S. Vasudevan, president of the Tamil Nadu Small and Tiny Industries Association, at the Vettri Tamil Nadu MSME Summit 2026 in Chennai.
Vasudevan warned that micro and small enterprises across the country are facing an exceptionally difficult period because of the West Asia conflict and the continuous rise in production and operational costs. He highlighted steep increases in gas prices, raw material costs, transportation expenses, power‑related challenges, labour costs and financial constraints as major pressures on the sector.
In the current business environment, he urged entrepreneurs and industrial members to exercise utmost prudence in financial management, optimise operational efficiency, avoid unnecessary expenditure and focus on maintaining business stability and long‑term growth.
P.N. Vasudevan, managing director of Equitas Small Finance Bank, added that many MSMEs, especially micro units, are struggling. He pointed out that small‑scale trading units are not covered by government schemes and called on authorities to consider how best to support these micro units.
