IIT-M and industry bodies to study impact on MSMEs

In the context of the stimulus package for MSME sector announced by Union Finance Minister Nirmala Sitharaman, this exercise initiated by the faculty from the Department of Humanities and Social Sciences, is expected to be completed within three to four weeks to understand the resilience of such units in the State.

Subash Sasidharan, Associate Professor of Economics, Department of Humanities, said Tamil Nadu accounts for one of the largest number of MSMEs in the country with more than 6.89 lakh registered enterprises. “This, in turn, accounts for more than 15 per cent of the total MSMEs in India. Given the significance of MSMEs in Tamil Nadu, the disruption caused by the COVID-19 is a major concern,” he said.

Based on the outcome of this study, the researchers are planning to analyse the adaptation and coping strategies to overcome the shock due to the pandemic, which could help in quick recovery of the MSMEs in Tamil Nadu.

About the focus of this study, he said, “MSME sector is the largest employer in the country. The survivals of these enterprises are at stake due to this pandemic. Therefore, there is an urgent need to undertake research to analyse the challenges of these enterprises in detail.”

The Institute is partnering with ConsoTree, the research and industry development and industry bodies like Tamil Nadu Small and Tiny Industries Association (TANSTIA), an apex body of MSMEs, and district level bodies including Coimbatore District Small Industries Association (CODISSIA) and Madurai District Tiny and Small Scale Industries Association (MADITSSIA).

Subash said that this kind of voluntary industry-academia collaboration is expected to further stimulate such research efforts in other states, which will be useful to formulate national level strategies to strengthen the MSME sector in the post-COVID scenario.