Tamil Nadu Eyes $1 Trillion Economy by 2030 Amid MSME Struggles: SICCI

Despite the presence of numerous public and private banks across India, Micro, Small, and Medium Enterprises (MSMEs) continue to face significant hurdles in securing funding, with high interest rates and limited capital availability remaining major obstacles, according to Subhasri Sriram, Managing Director of Shriram Group. Sriram made these remarks during the Chennai Economic Summit 2025, organised by The Southern India Chamber of Commerce and Industry (SICCI).

Speaking at the summit, Sriram emphasised the need to revive traditional banking models and advocated for localised, community-centric financial services. She suggested that personalised banking solutions from local banks could provide the flexibility and support needed for MSMEs to thrive. Drawing on successful examples from Japan and China, she praised Japan's community-focused banking system and China's robust financial ecosystem, which integrates global, state-owned, and regional banks to support smaller industries.

Sriram also called for a revision of the MSME classification to better reflect the evolving needs of modern businesses and improve access to financial resources. She unveiled a comprehensive SICCI knowledge report that offers strategic recommendations aimed at boosting economic growth.

SICCI President V N Shiva Shankar highlighted Tamil Nadu’s goal of achieving a $1 trillion economy by 2030 but acknowledged the challenges, including weak consumer demand, 15.79% youth unemployment, and slow recovery in rural areas. He urged a strategic focus on upskilling, energy security, green mobility, and strengthening the MSME sector.

The summit, which attracted a host of influential industry leaders, also featured speakers such as Gopalakrishnan Balasubramanian, CEO of XeedQ; Lakshmi Vaideeswaran, CEO of Walmart Centre of Tech Excellence at IITM; Gopi Koteeswaran, Founder of Dzruptiv AI; Sudha Meiyappan, AVP at auctusESG LLP; Vivien Massot, MD at TAC Economics; and Naveen Kolathur, COO at Driver Logistics.

Discussions at the event centred on driving India's economic growth through the empowerment of MSMEs, with a focus on integrating technology and skill development. Key topics included the role of Artificial Intelligence (AI), the Internet of Things (IoT), and robotics in transforming MSME operations and creating a future-ready workforce.