South India's SME sector powers regional prosperity

For many households, SMEs are the primary source of income. Women, in particular, have benefited from SME-led employment, especially in sectors like garments, food processing, and handicrafts, fostering greater gender inclusivity in the economy

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The Small and Medium Enterprises (SME) sector in South India is more than just a support system to large industries—it is a dynamic, resilient, and vital engine driving the region's economic growth. From textiles in Tamil Nadu to electronics in Karnataka, and from spices in Kerala to pharmaceuticals in Andhra Pradesh and Telangana, South India's SME ecosystem spans a diverse array of industries, providing employment to millions and contributing significantly to regional GDP.

In a region known for its entrepreneurial spirit and cultural diversity, SMEs form the economic backbone. They constitute over 90% of industrial units in states like Tamil Nadu and Karnataka and contribute around 30% to India's overall GDP, with South India accounting for a substantial share. These enterprises are deeply woven into the region's socio-economic fabric, powering both urban and rural development.

One of the sector's strongest areas is manufacturing. Coimbatore, often referred to as the "Manchester of South India," is home to thousands of SMEs engaged in textile manufacturing, pump production, and precision engineering. Similarly, Sivakasi in Tamil Nadu thrives as a hub for printing and fireworks industries, while Tiruppur is a global player in knitwear exports. These SME clusters not only support local employment but also drive exports, earning valuable foreign exchange and strengthening India's trade balance.