At a time when global volatility and trade disruptions emerge as a mixed bag for India’s manufacturing enterprises, MSMEs have the opportunity to go global with their products and increase their contribution to the economy, notwithstanding the challenges.

Speakers and panellists stressed this insight on the audience at the Hindu businessline’s MSME Growth Conclave 2025 in Coimbatore, where heads of MSMEs, large enterprises and industry bodies came together to discuss the opportunities and challenges for MSMEs in a world of trade disruptions and geopolitical flux on the occassion of MSME Day.

R Nandini, Immediate Past Chairperson, Cll Southern region, and MD, Chandra Textiles, said that it is time cities like Coimbatore, which stands for industrial innovation and entrepreneurial resilience, can power India’s next phase of growth.

Defence sector

The event took a special look at the indigenisation push in defence sector created by Operation Sindoor, and what it means for the MSMEs supplying to the industry.

The panellists of the defence-centric chat emphasised on how the time has come for India’s defence innovators to step up. They urged MSMEs to focus on smart ammunitions and noted increased interest from MSMEs to get into drones after Operation Sindoor. While there is a lot of talk about achieving technological dominance in 2047, the government procurement systems is still in old ages and needs some work, Ashok Atluri, CMD, Zen Technologies, said.

From a micro view at the defence sector, the event then zoomed out to some macro level changes as Aarati Krishnan, consulting editor, businessline, hosted a fireside chat with Ajay Srivastava, founder, Global Trade Research Initiative. Srivastava stressed that India’s benefits from China plus One is still dependent on China and to truly become an alternative of China, India has to cut cost of making things here .

Speakers also put forward the ways for MSMEs to navigate global trade disruptions with most of them noting that trade wars and tariff uncertainties have largely been positive for India Inc. Ramesh M, MD of aluminium castings exporting company Alphacraft, highlighted his operations as an example of how China Plus One can happen without depending on China. Sasikumar Gendham, President, ELCINA, urged MSMEs to narrow their focus on one single area of niche to fully excel at it.

97 per cent of our MSMEs are micro, and thus our job as bankers is that much more difficult, Arun Aravind, Exe. Vice President, NSM, Emerging Enterprise Group, HDFC Bank, said, adding that bankers will continue to support them.

The conclave was powered by Janatics and HDFC Bank. The associate partners for the event included SSVM Institutions-Coimbatore, City Union Bank, Radiance Realty, SIDBI, South Indian Bank, Tally, Milky Mist, Indian Overseas Bank and Union Bank of India. Lexus was the luxury partner.

Published on June 27, 2025