Units grappling with rising costs, says expert at Vettri Tamil Nadu MSME Summit 2026

MSMEs play a critical role in employment generation, exports, innovation, regional development, and inclusive economic growth and strengthening them is essential for achieving the vision of a $1.5 trillion Tamil Nadu economy, said S. Vasudevan, president of Tamil Nadu Small and Tiny Industries Association (Tanstia) in Chennai on Friday.

According to him, Micro and Small Enterprises across the country are presently undergoing an extremely challenging phase due to the West Asia conflict and the continuous increase in production and operational costs. “In particular, the steep increase in gas prices, rising raw material costs, transportation expenses, power-related challenges, labour costs, and financial constraints have placed tremendous pressure on the MSME sector,” he said at the Vettri Tamil Nadu MSME Summit 2026 organised by FICCI.

“In this difficult business environment, we sincerely appeal to all 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,” he added.

P.N. Vasudevan, managing director of Equitas Small Finance Bank said that many MSMEs are struggling, especially the micro units. He pointed out that small-scale trading units are not covered by government schemes. “Government should start thinking about how to support these micro units,” he said.