This initiative aligns with the Tamil Nadu government’s push for advanced infrastructure support for small and medium manufacturers. The proposed laboratory follows the Chief Minister’s recent Rs 5 crore capital grant announcement for building cutting-edge testing facilities. AIEMA has already submitted a Detailed Project Report (DPR) to the state government outlining the scope and operational framework of the lab. Designed to function as a Common Facility Centre (CFC), will be fully managed by the association and will provide high-precision material and dimensional testing services which are crucial for MSMEs engaged in quality-intensive, precision manufacturing. “For a small industry, investing in high-end testing equipment is a huge burden. Private labs are available but often expensive and time-consuming. This new CFC will make top tier testing accessible and affordable for our members,” said R S S Satish Babu, President AIEMA. The association will oversee the lab’s establishment and ongoing operations. “We are not seeking any external collaborations at this stage. We are confident of managing it entirely within the association,” Babu added. Meanwhile, AIEMA continues to prioritise skill devel opment to prepare MSMEs for next-gen manufacturing demands. Its Centre of Excellence and Skill Development Centre, already in operation, provides hands-on train ing in advanced techniques and tools. “Our CAD/CAM centre incorporates sophisticated skilling infrastructure. The challenge now is ensuring maximum utilisation by our member industries,” Babu noted. Although no formal proposals have recently been made for AI-specific programmes, AIEMA sees its existing facilities as adaptable platforms for incorporating emerging technologies.
CREDIT ACCESS A PERSISTENT PAIN POINT
Even as infrastructure and skill-building initiatives gather momentum, financial challenges persist particularly in the area of credit access. AIEMA leaders continue to raise concerns over the disparate treatment of MSMEs in nonperforming asset (NPA) classifications. “There’s a different yardstick for MSMEs when it comes to NPAs. We’ve been advocating for a more uniform classification policy especially during transitional stages of financial stress,” said A N Sujeesh, former President of AIEMA. While banks often cite improved lending through various government schemes, AIEMA feels that ground-level implementation lags behind the rhetoric. According to Sujeesh, “Many MSMEs are ready to invest and grow, but the financial ecosystem still isn’t fully aligned to support that ambition.”
MIXED OUTCOMES FROM PAYMENT REFORMS
On the regulatory front, the government’s new 45-day payment rule for MSMEs which disallows companies from claiming expenses from their taxable income if payments are delayed has had a mixed impact. The TReDS (Trade Receivables Discounting System) portal, designed to accelerate invoice clearance, has produced mixed results among AIEMA’s members. “Some have seen great success with TReDS; others remain uncertain,” Sujeesh said, adding, “A worrying trend, however, is the diversion of large project contracts away from MSMEs. To avoid compliance pressure, some clients are awarding these contracts to larger players. While it may reduce administrative burdens, it ultimately deprives MSMEs of critical growth opportunities.”
ACMEE 2025: BEYOND SMART MANUFACTURING
AIEMA hosted ACMEE 2025, the 16th edition of its flagship biennial industrial exhibition. With the theme ‘Beyond Smart Manufacturing’, the event showcased cutting edge technologies like robotics and automation, pushing MSMEs toward Industry 5.0 readiness. “This year’s edition has seen record participation, with 30 per cent of exhibitors being first timers,” said P. S. Ramesh, Chairman of ACMEE 2025. Tamil Nadu currently hosts the largest number of MSMEs in the country, accounting for 15.07 per cent of India’s total, with 6.89 lakh registered enterprises. Wit in the state, Ambattur Industrial Estate spread across 1,167 acres stands as one of the largest and most influential manufacturing hubs housing hundreds of small and medium manufacturers.