IMPACT OF GOVERNMENT SCHEMES ON MSME GROWTH IN TAMIL NADU

Abstract

Micro, Small, and Medium Enterprises (MSMEs) are critical to India’s economic growth, contributing significantly to industrial output, exports, and employment. Tamil Nadu, one of the country’s leading industrial states, has consistently supported MSMEs through a mix of central and state-level schemes. This study examines the impact of government initiatives on MSMEs in Tamil Nadu using secondary data from official sources, covering the period 2015–2024. The analysis focuses on three indicators—registrations, credit access, and employment generation. Evidence from the state’s MSME Policy Note (2024–25) and related government reports shows that targeted schemes such as NEEDS, UYEGP, PMEGP, PMFME, and the Annal Ambedkar Business Champions Scheme have enabled over 21,000 entrepreneurs in 2023–24 alone, with more than ₹600 crores disbursed in subsidies. Enterprise-level subsidies on capital, payroll, certification, and energy efficiency further benefitted nearly 4,500 MSMEs, while cluster and infrastructure development attracted close to ₹800 crore in investments. Cooperative-based MSMEs also recorded turnovers exceeding ₹2,000 crore, sustaining employment and traditional industries. Overall, the findings highlight that government schemes have improved financial inclusion, reduced operational costs, and created an enabling ecosystem for MSMEs, though challenges in credit access and awareness remain.