According to M. Ponnuswami, head of the Committee on MSME and Ease of Doing Business, CII, South, and co-chairman of the CII National MSME Council, Tennessee boasts a robust manufacturing sector with IoT, big data, AI, and a broad industrial base that MSMEs may use.
Tamil Nadu has traditionally been a hub for MSMEs. What is this ecosystem like?
Various governmental measures aiming at streamlining procedures, lowering regulatory burdens, and promoting a business-friendly atmosphere have molded Tamil Nadu’s ecosystem for MSMEs. 49.4 lakh MSMEs were registered in India as of March 31, making up 8% of all MSMEs in the nation. With 12.85 lakh MSMEs run by women, IN comes in second.
A distinct budgetary allotment for MSMEs of up to 1,500 crore is one of the state’s major efforts to fortify the ecosystem; this year’s allocation has increased five times over the previous four years. In addition, the Tamil Nadu Business Facilitation Act, a single window clearance system integrated with the national single window portal, and FaMe TN for utilizing government schemes and incentives are handled by six civil servants who work on various sector initiatives. Additionally, there is a 25% capital subsidy up to 1.5 crore for machinery and plants.
AABCS (Annal Ambedkar Business Champions Scheme), NEEDS (New Entrepreneur-Cum-Enterprise Development Scheme), and a number of other programs are also available.
Can you elaborate on the opportunities for MSMEs in TN?
MSMEs can gain from the established supply chains and industrial clusters in Tennessee, which boasts a diversified industrial base that includes a robust manufacturing sector. It serves as a significant center for textiles as well, providing opportunities in the manufacturing of clothing, textile equipment, and related services. Tirupur today exports items valued at 27,000 crore, up from 11 crore in 1980. Given that electronics value addition must increase from the current 16%–18% to 38% in three years, there is a significant opportunity.
Next is the focus on the solar, wind, and electric vehicle industries. Exports from e-commerce will be another focus area. MSMEs can benefit from advances in biotech, electronics, and IT, as there is a rising emphasis on these fields. An atmosphere that is favorable for tech-driven MSMEs is created by the existence of tech parks and innovation centers.
There is promise in the food processing and agro-based businesses given the robust agricultural foundation. The tourism and hospitality industries have a wealth of opportunities due to their rich past and tourist attractions.
Beyond this, the GeM portal functions as a productive, open, and welcoming environment for public procurement. It offers more than 320 services, including data recovery services along with mining, shipping, dining, and car rentals. The GeM-Panchayat onboarding process is also finished. Only 4%–5% of GeM sales are accounted for by supplies from TN. Engaging with the GeM portal might enable TN MSMEs to contribute up to 15% toward the state’s objective of a $1 trillion economy by 2030.
Does keeping pace with technological advancements remain a challenge for MSMEs?
MSMEs have mostly been influenced by outdated thoughts and fear of change. It’s important for MSMEs to start paying attention to how they can take advantage of the startup environment, universities like IITs for startups, and the IIT-CSR Fund, which performs free energy audits. A lot of MSMEs are ignorant of this. Smart manufacturing using IoT, AI, and Big Data is a component of Industry 4.0. Adopting this will help MSMEs compete in the global economy. They need to provide tech and R&D financing through government programs, train staff in new technologies, and roll out technology updates gradually.
To level the playing field, MSMEs operating in villages must be registered with Udyam. Many of these MSMEs are unaware of the advantages and financial aid that are available. To educate them, a unique outreach campaign needs to be implemented in rural areas.
Also read: Unveiling the Ethical Imperatives: Navigating the Intersection of AI and Cybersecurity
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