Micro enterprises, which account for about 99 per cent of Tamil Nadu’s registered MSME units, need greater access to capital and targeted government support, according to P N Vasudevan, Managing Director, Equitas Small Finance Bank.
Vasudevan was speaking at the Vettri Tamil Nadu MSME Summit 2026 organised by the Federation of Indian Chambers of Commerce and Industry (FICCI) and the Tamil Nadu Small and Tiny Industries Association.
He suggested that nearly half of all MSMEs are in the trading businesses.
“Lots of subsidies and other kinds of schemes are available for manufacturing MSMEs. But we do not have so many schemes for service, and practically nothing for trading. I think the government has to start thinking in terms of how they support micro MSMEs and especially trading enterprises,” he said.
Tamil Nadu’s micro enterprises, which account for 99 per cent of the State’s 60 lakh registered MSME units, need greater access to affordable finance and targeted government support, particularly in trading and services, he said.
Subsidised interest
He added that the government can support micro and trading MSMEs by exploring options for subsidising interest on loans.
G S K Velu, Chairman of FICCI Tamil Nadu State Council said MSMEs were crucial to Tamil Nadu’s ambition of becoming a $1.5-trillion economy by 2036 and called for simpler regulations and improved ease of doing business. Vijay Anandh R, MD and CEO of City Union Bank, highlighted the role of digital lending in speeding up credit decisions.