Units grappling with rising costs, says expert at Vettri Tamil Nadu MSME Summit 2026
Industry experts at the Vettri Tamil Nadu MSME Summit 2026 highlighted that small businesses are struggling due to rising operational costs and global conflicts. Leaders called for better financial management and increased government support for micro-units to ensure economic stability.
Why it matters
MSMEs are vital for employment and economic growth, and their current financial distress poses a risk to the broader regional economy.
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.
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