MSMEs in Tamil Nadu strike on December 18 to demand power tariff cut.
Chennai, India: The micro, small and medium enterprises (MSME) sector in India is planning to go on a strike from December 18, 2023, to demand a cut in power tariffs. The decision to strike was taken at a meeting of the Tamil Nadu Association of MSMEs (TAME) on Monday.
The MSMEs are demanding a 50% cut in power tariffs, citing the rising cost of production and the declining margins of MSME businesses. The MSMEs also say that the high power tariffs are making it difficult for them to compete with global players.
“The power tariff hike has made it impossible for us to operate profitably,” said TAME president T. Rajkumar. “We have been demanding a cut in power tariffs for a long time, but the government has not taken any action. We are now forced to go on strike to get our demands met.”
The MSME sector is a major contributor to the Indian economy, accounting for over 30% of the country’s GDP and over 45% of its exports. The sector also employs over 120 crore people. And, the strike by the MSME sector is expected to have a significant impact on the Indian economy.
The Indian government has been trying to promote the MSME sector, but the high power tariffs are a major challenge for MSMEs. The government has announced a number of schemes to help MSMEs, but these schemes have not been effective in reducing the cost of production. The MSME strike is a warning signal for the Indian government.
Impact of the strike
The impact of the MSME strike is likely to be significant. It could disrupt production and supply chains, and also lead to job losses.
The strike is also likely to have a negative impact on the Indian economy. The MSME sector is a major contributor to the Indian economy, and the strike can slow down economic growth.
The government needs to take immediate action to resolve the issue with the MSME sector. They need to reduce the cost of production for MSMEs in order to make them competitive in the global market.
Conclusion
The MSME strike is a serious concern for the Indian government. The government needs to take immediate action to address the concerns and reduce the cost of production for MSMEs. By doing so, the government can help the MSME sector to thrive and contribute to the country’s economic growth.
