The present geopolitical situation, especially US tariffs, is a positive for Indian MSMEs. However, to take full advantage of it, MSMEs should invest more in R&D and make products rather than components.
This was the key message that emerged from the ‘MSME Growth Conclave 2025’ organised by businessline in Coimbatore.
Trump tweet
Sasikumar Gendham, President, ELCINA, said that the tariffs were good particularly to the Indian electronics industry. “After Trump tweet’s, things are accelerating even more,” he said, adding that it would not be easy for the US to manufacture electronic goods, due to high labor costs there.
Speaking at a panel discussion on Navigating Global Trade Disruptions, moderated by Sindhu Hariharan, Chief of Bureau, Business Line, Chennai, Gendham suggested that MSMEs should choose one or two products and become very cost competitive in them, a view that was shared by another panellist, Kanishka Arumugam, Co-Chief Executive, EKKI Pumps. Arumugam said, “the world sees India as a reliable supply chain partner,” but stressed that MSMEs should invest more in R&D.
Kumar Duraisamy, Joint Secretary, Tiruppur Exporters Association, said that garment manufacturers of Tiruppur were seeing a big jump in exports. Exports used to hover around ₹35,000 crore earlier, rose to ₹44,000 crore in 2024-25 .However, a big chunk of the exports came from about 100 of the 2,500-odd units in Tiruppur. Duraisamy called upon the government to bring back the Technology Upgradation Fund, a helpful scheme that was stopped by the government of India. He also wanted the government to bring back Interest Equalisation Scheme, which was beneficial for the MSMEs.
M Ramesh, Managing Director, Alphacraft, an aluminium die cast company, observed that one country that India needed to watch out for is Brazil. The country today does not have a big capacity but “they can build over time.” He also said that Alphacraft is an instance of one company that does not depend on China.