Tamil Nadu MSME Act 2008 helps the sector grow

The Tamil Nadu government has proved that encouraging micro, small and medium enterprises (MSME) can spur the growth rate of the state.  

Owing to the privileges given to the MSME sector of the state under the MSME Act 2008, the sector reported a 14 per cent increase in investment in fixed capital to Rs 19,360 crore in 2007-08 from Rs 16,820 crore in 2006-07. The investment in 2005-06 was Rs 16,100 crore.  

According to the KPMG report, which sourced data from the Department of Economics and Statistics even the output in terms of value too was up to Rs 1.14 lakh crore in 2007-08 from Rs 1.05 lakh crore in 2006-07 and Rs 1.03 lakh crore in 2005-06.   

The act aims at encouraging agro-based industries, promoting entrepreneur development and sector specific skill development training programmes, allotting 20 per cent land to MSMEs in the schemes undertaken by State Industrial Promotion Corporation of Tamil Nadu Ltd and offering a rebate of 50 per cent on stamp duty and registration.