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The Economic Times
The Economic Times
Neha Dewan

From local strength to global supply chains: The challenges before Tamil Nadu MSMEs

MSME MSMEs Tamil Nadu Primus Partners

Tamil Nadu, the second-largest state economy after Maharashtra with Rs 35.29 lakh crore gross state domestic product (GSDP) in 2025-26, has a flourishing MSME (micro, small, and medium enterprise) ecosystem. Spread across sectors such as textiles, automotive, engineering, food processing, leather, and electronics, the state has more than 62.2 lakh registered MSMEs, as per data from Udyam.

But while Tamil Nadu has all the ingredients of a strong MSME ecosystem starting from a deep manufacturing base, established industrial clusters, skilled talent, and a growing presence across sectors, MSMEs in the state still grapple with challenges relating to limited awareness of government schemes, cumbersome processes, and a higher dependence on exports.

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