Micro, small, and medium enterprises (MSMEs) play a vital role in the economic development of India. They contribute about 45% of India’s industrial production and 40% of its exports; furthermore, they constitute 95% of the total industrial units in the country. Energizing MSMEs can significantly boost manufacturing growth and employment in India, and Tamil Nadu in particular where they have a strong presence.

Investment in MSMEs has grown at a compounded annual growth rate of 34% during 2007–2017. In addition, there has been a 71% increase in employment generated through MSMEs in 2016/17 over 2015/16 along with a steady 29% increase year-on-year in the number of units registered with the MSME Department. It is evident that the acceleration in MSME growth in Tamil Nadu will need to be sustained through interventions that improve the ease of starting, operating, and doing MSME business in the state.