Tue Jan 20 14:02:19 UTC 2026: # MSMEs in Coimbatore and Tiruppur Plead for Central Government Support Amidst Economic Strain

The Story:

Micro and cottage enterprises in the Coimbatore and Tiruppur districts of Tamil Nadu are urgently appealing to the Central government for increased support. C. Sivakumar, President of the Coimbatore Tiruppur District Micro and Cottage Entrepreneurs Association, highlighted unfulfilled promises from the previous Union budget, specifically the implementation of MSME credit cards similar to Kisan cards. Industry leaders are advocating for measures to reduce raw material costs, simplify government procurement processes, lower CGTMSE scheme fees, and alleviate financial burdens on micro-entrepreneurs.

J. James, president of the Tamil Nadu Association of Cottage and Tiny Enterprises, emphasized the inadequacy of the previous budget allocation for MSMEs and called for a more substantial investment. Concerns are mounting over the impact of the 18% GST on key manufactured goods, such as wet grinders and pump motors, with a plea for a reduced rate of 5%. MSMEs are also seeking more favorable loan terms from nationalized banks and a reduction in GST on job works.

Key Points:

  • MSMEs are requesting the implementation of MSME credit cards as announced in the previous Union budget.
  • Calls for raw material banks in MSME clusters to lower costs.
  • Simplification of procedures for micro-entrepreneurs to engage with Central government public sector undertakings.
  • Reduction of CGTMSE scheme fee to 0.5%.
  • Complete exemption from bank transaction charges for micro-entrepreneurs with sales below ₹50 lakh in the first year.
  • Organization of a global buyer-seller meet in Coimbatore district.
  • Resumption of work on the stalled MSME Technology Centre at Arasur in Coimbatore district.
  • Request for allocation of 1% of the revenue generated by industry to the MSME sector in the upcoming budget.
  • Calls to resume the 15% subsidy for purchasing machinery.
  • Seeking a six-month grace period before assets are covered under the SARAS Act in case of loan repayment defaults.
  • Demand to reduce GST rate from 18% to 5% on key manufactured goods.
  • Request for nationalized banks to provide loans at 5% interest.
  • Demand to reduce GST on job works to 5% from 18%.

Critical Analysis:

The historical context of other news headlines from January 20, 2026, reveals a landscape of widespread demands and potential societal friction. The CPI(M)’s demand for action, the AUT-MUTA strike for CAS benefits, and the BJP’s call for inquiry into Singareni deals all point to a climate of heightened socio-political activism and economic anxieties. The MSME sector’s plea for government support fits into this broader narrative of various groups seeking redress and intervention from authorities amid economic challenges. The tech sector seems insulated, as evidenced by Super Micro’s soar; however, this highlights the growing divide between sectors.

Key Takeaways:

  • The MSME sector in Tamil Nadu is facing significant economic pressures.
  • There’s a disconnect between government announcements and their implementation, breeding frustration among MSMEs.
  • GST rates are a major pain point for the industry, impacting competitiveness.
  • Access to affordable credit and simplified procedures are crucial for the survival and growth of micro-enterprises.
  • MSMEs are seeking targeted government interventions, including subsidies, infrastructure development, and favorable loan terms.

Impact Analysis:

The unmet demands of the MSME sector, coupled with broader socio-political unrest, could have far-reaching consequences. Failure to address the concerns of these enterprises could lead to business closures, job losses, and economic stagnation in key industrial hubs like Coimbatore and Tiruppur. It could also fuel further social unrest if the perception grows that the government is not adequately supporting small businesses. A responsive and targeted approach is needed to ensure the sustainability and growth of the MSME sector, which is a vital engine of the Indian economy.

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