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Micro-industries of Tamil Nadu hit by global economic slump

Coimbatore, June 3 (ANI): The global recession has affected the micro or the small industries in Tamil Nadu. 

Coimbatore is popularly known as the Manchester of South India because of large number of textile mills and textile units situated in and around the region.

In recent years, the city has emerged as the major hub for engineering industries, which consist of micro, small and medium engineering industries. These industries produce equipments from small spares to large machinery mainly for supplying to large engineering companies like Ashok Leyland, Maruti, Reliance, ISRO and BHEL.

In this category, the most affected are the micro industries. In Coimbatore alone, there are about fifty thousand engineering units, of which the micro-industries alone captures thirty thousand units providing jobs to almost 3,00,000 employees.

According to Kalyana Sundaram, president of the Tamil Nadu Pumps and Spares Manufacturers Association (TAPMA), the market share of Coimbatore-based pump industries have dropped due to recession and major crisis of power, shortage of labourers and support from government.

“Coimbatore has 75 per cent market share in Indian pump industries and now it has reduced almost around 35 per cent market share. Particularly in the past two years, the industry has faced major crisis mainly due to power cut, increase in raw material prices, labourer shortages and lack of support from the government. Small and micro level pump manufacturer faced a huge crisis due to the above reasons and also due to the market recession,” said Sundaram.

According to the Micro-industries Association, crude oil industry is the most affected industry due to the economic slump.

“In the recent times, due to recession, the most affected area is the crude oil industry. On a collective basis, from 5,00,000 units, we suffered a loss of 80,000,000,000,” said James, President, Tamil Nadu Association of Cottage And Micro Industries (TACT).

The MSME segments of Coimbatore have contributed significantly to the development in the region both in terms of productivity, exports, employment generation and modernisation.

However, global recession, slowdown in the Indian economy, shortage of power and inadequate infrastructure have become the major issues in their downfall. (ANI)

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