TN MSMEs Hit 49.48 Lakh Units, Govt Allocates Rs 1500 Crore for Expansion

ENA State 2024-09-09 13:42:38 Chennai, Sep 9 (KNN) Tamil Nadu has long been recognised as a hub for Micro, Small, and Medium Enterprises (MSMEs), due to its conducive ecosystem shaped by state initiatives. According to M Ponnuswami, Co-chairman of the CII National MSME Council and Chairman of the Committee on MSME and Ease of Doing Business, CII (South), the state has created an environment that fosters growth for MSMEs by simplifying processes and reducing regulatory burdens. As of March 31, 2023, Tamil Nadu is home to 49.48 lakh registered MSMEs, accounting for 8 per cent of the national total. The state is particularly supportive of women entrepreneurs, with 12.85 lakh MSMEs owned by women, ranking second in the country in this category. The government has increased its budget allocation for MSMEs by fivefold this year, to Rs 1,500 crore, a significant boost aimed at fostering growth in this vital sector. Tamil Nadus government initiatives include a single-window clearance system integrated with the national portal and FaMe TN for accessing government schemes. There are capital subsidies of 25 per cent on machinery and specific programs like the New Entrepreneur-cum-Enterprise Development Scheme (NEEDS) and the Annal Ambedkar Business Champions Scheme (AABCS). These initiatives, combined with Tamil Nadus diverse industrial base, create ample opportunities for MSMEs to flourish. Ponnuswami highlights the state's strong manufacturing sector and supply chain networks as major advantages for MSMEs. Textile manufacturing, particularly in Tirupur, which now exports goods worth Rs 27,000 crore compared to Rs 11 crore in 1980, showcases the potential of Tamil Nadu's MSMEs. The electronics sector also presents opportunities, with the value addition goal set to rise to 38 per cent from the current 16 per cent-18 per cent within three years. Other promising sectors include renewable energy, e-commerce, and agro-based industries. The state's tourism and hospitality industries also offer untapped potential, supported by Tamil Nadus rich cultural heritage and tourism hotspots. Despite these opportunities, keeping pace with technological advancements remains a challenge for many MSMEs. Ponnuswami encourages MSMEs to adopt Industry 4.0 technologies, such as IoT, AI, and Big Data, and to collaborate with institutions like IITs for technological upgrades and R&D funding. Furthermore, he stresses the importance of reaching out to rural MSMEs and educating them on the benefits of Udyam registration, subsidies, and technology adoption, ensuring inclusivity and sustainable growth in Tamil Nadus MSME sector. (KNN Bureau) 39205 https://knnindia.co.in/news/newsdetails/state/tn-msmes-hit-4948-lakh-units-govt-allocates-rs-1500-crore-for-expansion 2024-09-09 13:42:38 knnindia.co.in TN MSMEs Hit 49.48 Lakh Units, Govt Allocates Rs 1500 Crore for Expansion