High Interest Rates & Limited Capital Hindering MSME Growth: Chennai Economic Summit 2025
Date
1/13/2025 4:41:35 AM
(MENAFN- KNN India)
Chennai, Jan 13 (KNN) Access to funding remains a critical hurdle for India's Micro, Small, and Medium Enterprises (MSMEs) despite the country's extensive banking network, according to Shriram Group Managing Director Subhasri Sriram.
Speaking at the Chennai Economic Summit 2025, organised by The Southern India Chamber of Commerce and industry (SICCI), Sriram emphasised that high interest rates and limited capital availability continue to impede MSME growth.
Sriram advocated for a return to community-focused banking models, citing successful examples from Asian economies. She pointed to Japan's community-centered banking system and China's diversified financial ecosystem, which combines global, state-owned, and regional banks, as effective models for supporting small industries.
The executive emphasised that localised, personalised banking solutions could provide MSMEs with the flexibility they require.
During the summit, SICCI President V N Shiva Shankar outlined Tamil Nadu's economic vision, including its goal to achieve a USD 1 trillion economy by 2030.
However, he acknowledged significant challenges facing the state, including weak consumer demand, a 15.79 percent youth unemployment rate, and sluggish rural recovery. Shankar emphasised the importance of focusing on upskilling, energy security, green mobility, and MSME sector strengthening.
The event brought together prominent business leaders and industry experts, including XeedQ CEO Gopalakrishnan Balasubramanian and Walmart Centre of Tech Excellence CEO Lakshmi Vaideeswaran.
Discussions centered on accelerating India's economic growth through technological advancement and workforce development, with particular emphasis on integrating artificial intelligence, Internet of Things, and robotics into MSME operations to create a future-ready workforce.
(KNN Bureau)
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