SMALL AND MEDIUM ENTERPRISES IN TAMIL NADU

General

Tamilnadu is one of the well developed states in terms of industrial development. In the post-liberalization era, Tamilnadu has emerged as one of the front-runners by attracting a large number of investment proposals particularly in recent times. Today, Tamilnadu is the third largest economy in India and its current State Domestic Product is well over US $ 23 billion.

The Small and Medium Enterprises in Tamilnadu today comprise of automobile ancillaries, textiles and food processing. There is a growth in the automobile ancillaries industry because companies like Ford and Hyundai have come to Tamilnadu. The food processing sector again is growing as there is a demand for processed and packaged food. Entrepreneurs are setting up cold storages and exporting frozen vegetables and fruits.

Importance of SME in Tamilnadu

The SME sector has a major contribution to the economy of Tamilnadu. The table given below indicates the trend in growth of small scale industries iduring the last ten years and the level of investment, employment, etc, it has created:-

Performance

There has been a phenomenal growth in the number of small scale industries in Tamilnadu. From a mere 18,440 SSI units in 1977 it has grown to 3,87,597 SSI units as on 31.12.2001.

A look at the group-wise classification of SSI shows Hosiery and Readymade Garments units at the top list with 89,464 units accounting for a little over 22.2% of the total number of units. Other Manufacturing industries are far behind with 58,777 units which is around 15% of the total.Manufacturing sector is closely followed by Food Products with 37,152 units which is close to 10%. Share of all other groups are of single digit and the share of Jute, Hemp and Mesla Products and Beverages, Tobacco & Tobacco Products together is below 1%.