Units grappling with rising costs, says expert at Vettri Tamil Nadu MSME Summit 2026
According to S. Vasudevan, president of Tanstia, Micro and Small Enterprises are presently undergoing an extremely challenging phase due to the West Asia conflict and the continuous increase in production and operational costs
Micro and Small Enterprises (MSMEs) form a vital part of Tamil Nadu's economy, contributing significantly to employment generation, exports, innovation, regional development, and inclusive growth. However, these enterprises are currently grappling with mounting challenges, as pointed out by S. Vasudevan, president of Tamil Nadu Small and Tiny Industries Association (Tanstia) during the Vettri Tamil Nadu MSME Summit 2026.
The expert highlighted that MSMEs are facing a daunting phase due to the conflict in the West Asia region and the ongoing surge in production and operational costs.
Vasudevan emphasized the substantial pressure the sector is experiencing, citing factors such as skyrocketing gas prices, escalating raw material costs, increased transportation expenses, power-related issues, rising labor costs, and financial constraints. To navigate this challenging business environment, Vasudevan urged entrepreneurs and industrial members to practice stringent financial management, enhance operational efficiency, avoid wasteful spending, and prioritize maintaining business stability and long-term growth.
Adding to the concerns, P.N. Vasudevan, managing director of Equitas Small Finance Bank, pointed out that many MSMEs, particularly micro units, are struggling to cope with the mounting pressure. He specifically highlighted that small-scale trading units are not covered under government schemes, urging the government to consider how to support these micro enterprises to ensure their survival and growth.
Written by urgent.news from The Hindu's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
