TANSTIA warns rising costs are straining small businesses

TANSTIA president S. Vasudevan warned at the Vettri Tamil Nadu MSME Summit 2026 in Chennai that rising production and operating costs were making conditions harder for small businesses. He urged entrepreneurs to manage their finances cautiously.

The Hindu reported that Vasudevan linked the sector's difficulties to the conflict in West Asia and increasing input costs. He identified gas, raw materials, transport, electricity-related challenges, labor costs and financing constraints as key sources of pressure.

The industry association representative urged companies to improve efficiency, reduce unnecessary spending and focus on business stability. He emphasized the contribution of micro, small and medium-sized enterprises to employment, exports, innovation and regional development, linking support for the sector to Tamil Nadu's ambition for a $1.5 trillion economy.

Equitas Small Finance Bank managing director P.N. Vasudevan separately highlighted the difficulties facing micro businesses. He said small trading enterprises were not covered by government schemes and urged authorities to consider ways to support them. FICCI organized the October 9 summit in association with TANSTIA.