“Resilience Comes from Balancing Growth with Responsibility”: Interview with Mr. C.K. Mohan, President, TANSTIA
Tamil Nadu’s small and micro industries form the backbone of the state’s industrial growth story. Yet, they continue to face policy headwinds, financing hurdles, and new risks in an uncertain global economy. In this conversation, C.K. Mohan, President of the Tamil Nadu Small and Tiny Industries Association (TANSTIA), shares his views on reforms, challenges, and the road ahead for entrepreneurs.
On GST reforms and their impact on small businesses
Q: GST reforms are often described as a major step towards simplification. How do they affect small enterprises in Tamil Nadu?
A (C.K. Mohan): GST reforms have created opportunities as well as challenges. On the positive side, clearer rules and streamlined processes reduce compliance burdens and make interstate trade easier for MSMEs. But frequent amendments and complex procedures often confuse smaller enterprises, especially those with limited access to professional accounting support. What is more worrying is the increase in labour job tariffs from 12% to 18%. We had been demanding a reduction to 5%, but instead the tariff has gone up. This will seriously affect micro industries in the state.
On the need for a separate MSME policy
Q: You’ve argued for a dedicated policy for micro and small industries. What would be its core pillars?
A: A separate framework is critical. In my view, it should rest on three pillars:
- Financial support and incentives – easy access to credit, subsidies and stricter enforcement of payment realization for micro industries.
- Infrastructure and market access – development of industrial clusters, common facilities and stronger support for digital and export linkages.
- Skill development and technology upgradation – programs that build workforce capabilities, encourage innovation and drive competitiveness.
Without these, micro and small industries will remain disadvantaged compared to larger players.
On access to finance and handholding
Q: Finance has long been a pain point. What solutions do you see?
A: Traditional banks remain hesitant to fund micro industries because of regulatory constraints. We need fresh thinking—targeted credit guarantee schemes, digital lending platforms designed for small businesses, and mentorship-driven financial programs that combine funding with advisory support. Public-private partnerships that bring together financial literacy, skills and market access can also empower SMEs in a more holistic way. But this requires the government to draft a specific policy for the micro manufacturing sector.
On TANSTIA’s evolving role
Q: Beyond policy advocacy, how is TANSTIA supporting its members in today’s risk environment?
A: Our role has expanded. We now help members navigate new risks like cyber threats, supply chain disruptions, and regulatory shifts. TANSTIA conducts workshops on cybersecurity best practices, seminars on risk management, and connects members with trusted technology and logistics partners. Our aim is to equip small businesses with both awareness and practical tools to remain resilient.
On Tamil Nadu’s MSME strengths
Q: What gives Tamil Nadu’s MSME ecosystem its unique edge?
A: The state has a diverse industrial base, a skilled workforce and strong infrastructure. From textiles and automotive components to engineering goods and electronics, Tamil Nadu’s clusters are well-recognised globally. The challenge now is to scale further. This means adopting advanced manufacturing technologies, meeting global quality standards and becoming export-ready. With digital adoption and international collaborations, our SMEs can achieve global competitiveness.
On sustainability and innovation
Q: How can small enterprises balance growth with sustainability?
A: Even with limited resources, micro and small enterprises are engines of innovation and employment. By integrating sustainability into core practices—energy efficiency, waste reduction, ethical sourcing—SMEs can turn responsibility into advantage. Government incentives and cluster-based collaboration can make these practices more feasible. Sustainable growth is no longer optional; it is a competitive edge.
On the way forward
Q: If you had to pick one transformative initiative for the next five years, what would it be?
A: I would propose creating a Digital & Sustainable SME Accelerator in Tamil Nadu. It would provide SMEs with access to cutting-edge technology, skill development and green practices. Such an initiative could lift productivity, reduce costs, and open new markets, making Tamil Nadu a global hub for future-ready SMEs.
On advice to entrepreneurs
Q: Finally, what message would you like to give emerging entrepreneurs?
A: Stay adaptable, stay connected, and stay committed. The business environment will keep evolving with new technologies and global shifts. What will set entrepreneurs apart is their ability to learn fast, embrace innovation and build strong networks. Aim for businesses that are not only profitable but also sustainable and socially responsible. Resilience, after all, comes from balancing vision with discipline, growth with responsibility.
