Contrary to claims that the industrial climate in Tamil Nadu has improved, close to 50,000 micro, small and medium enterprises (MSMEs) have been wound up in the State in just one year on account of a host of factors.
A government policy note tabled by the MSME Department in the Assembly on Thursday revealed that the total number of registered micro, small and medium industrial units in Tamil Nadu had dipped by a significant 18.45% in 2017-18 from the previous year. In absolute numbers, as many as 2,67,310 MSMEs were registered in 2016-17; this figure fell to 2,17,981 during 2017-18. This means 49,329 industrial units wound up operations in one year.
In a parallel development, the number of workers employed in MSMEs has fallen by over five lakh during the same period.
In 2016-17, the number stood at 18,97,619, while in 2017-18 it dwindled to 13,78,544.
