Despite the presence of numerous public and private banks in India, Micro, Small, and Medium Enterprises (MSMEs) continue to face significant challenges in accessing funding. High interest rates and limited capital availability remain major barriers, said Subhasri Sriram, Managing Director of Shriram Group, during the Chennai Economic Summit 2025, organised by The Southern India Chamber of Commerce and Industry (SICCI).

Sriram highlighted the need to revive traditional banking models and advocated for localised, community-centred financial services. She suggested that personalised banking solutions from local banks could provide the flexibility and support MSMEs need to thrive. Drawing on examples from Japan and China, she highlighted the effectiveness of Japan’s community-focused banking system and China’s robust financial ecosystem, which blends global, state-owned, and regional banks to support smaller industries.

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She also called for revising the MSME classification to better reflect modern business needs and improve access to financial resources. Sriram further unveiled a comprehensive SICCI knowledge report offering strategic recommendations for boosting economic growth.

SICCI President V N Shiva Shankar shared Tamil Nadu’s ambition of achieving a $1 trillion economy by 2030 while addressing challenges such as weak consumer demand, 15.79% youth unemployment, and slow rural recovery. He called for a strategic focus on upskilling, energy security, green mobility, and strengthening the MSME sector.

The summit featured influential speakers, including Gopalakrishnan Balasubramanian (CEO, XeedQ), Lakshmi Vaideeswaran (CEO, Walmart Centre of Tech Excellence at IITM), Gopi Koteeswaran (Founder, Dzruptiv AI), Sudha Meiyappan (AVP, auctusESG LLP), Vivien Massot (MD, TAC Economics), and Naveen Kolathur (COO, Driver Logistics).

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Discussions at the summit focused on driving India’s economic growth, emphasising the empowerment of MSMEs through technology and skill development. Key topics included the integration of AI, IoT, and robotics into MSME operations to create a future-ready workforce.