Units are facing rising costs, says expert at Vettri Tamil Nadu MSME Summit 2026

Officers at MSME Vettri Tamil Nadu Summit 2026 in Chennai on Friday. | Photo credit: RAGU R

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

According to him, micro and small businesses across the country are currently going through an extremely difficult phase due to the conflict in West Asia and the continuous increase in production and operating costs. “Particularly, the surge in gas prices, rising raw material costs, transport costs, power-related issues, labor costs and financial constraints have put enormous pressure on the MSME sector,” he said at Vettri Tamil Nadu MSME Summit 2026 organized by FICCI.

“In this difficult business environment, we sincerely appeal to all entrepreneurs and industry members to exercise utmost prudence in financial management, optimize operational efficiency, avoid unnecessary expenses and focus on maintaining business stability and long-term growth,” he added.

PN Vasudevan, managing director of Equitas Small Finance Bank, said many SMEs are struggling, especially micro units. He pointed out that small business units are not covered by government programs. “The government should start thinking about how to support these micro units,” he said.

Published – 10 Oct 2026 0:22 IST