MSMe’s unwillingness to invest in expansion or technology is considered to be the main challenge. | Photo Credit: Siva Saravanans
Coimbatore District, the pulsating MSME cluster, records several challenges that slow industrial activity across industries.
According to M. Karthikeyan, President of the Association Coimbatore District Small Industries Association, since the last financial year, the loan of the MSMES Offake has decreased. The aim of this year is almost 39,000 GBP Crores and in the first quarter of the financial year 2025-2026 almost no removal, especially for capital investments. Banks organize a molas loan to attract investments, he said.
The main challenge is the unwillingness of units to invest for expansion or technology because there is no “risk taste”. MSME units do not want to accept new loans, want to keep their business as a family business and are not aware of technological benefits. That should change, he said.
J. James, President of the Association of Tamil Nadu Association of Cottage and Tiny Enterprises, said 60 % of companies from pumps went to Gujarat. Orders from the automotive sector are going to several centers such as Hosur and Chennai. And textile orders have decreased. Furthermore, MSME, which invested in technology, is not able to obtain viable returns. “Top machines have increased productivity and we need to get more orders to maintain operations,” he said.
President of the Association of Manufacturers in South India, Mithun Ramdass, said that April to June is the top season for the sale of pumps and this year Coimbatore Industries recorded 20 % to 30 % decrease in business. “The main reason is inappropriate rains. Sale has been declining since last July and the last three months have been very bad,” he said.
This has led to loss of childbirth, reducing the number of weekly working days, etc. “This quarter is unexpectedly low. We should wait for the festival season,” he said.
Foundries also influenced the orders, he said.
Mr. James added that workers prefer to work in MSMes too. “We don’t get workers because of the changing scenarios.” The central and state government should look at the aimed measures to revive MSMES, he said.
Published – 26 June 2025 9:01
