Leather MSMEs for Make in India Impact in Tamil Nadu

R. Parkavi; G. Vinayagamoorthi

doi:10.34293/commerce.v14i4.11161

R. Parkavi Research Scholar, Department of Commerce, Alagappa University, Karaikudi, Tamil Nadu, India
G. Vinayagamoorthi Assistant Professor, Department of Commerce, Alagappa University, Karaikudi, Tamil Nadu, India

DOI: https://doi.org/10.34293/commerce.v14i4.11161

Keywords: Make in India, MSME Development, Leather and Footwear Industry, Udyam-Registered MSMEs, Government Schemes, Enterprise Performance, Budget 2025–26, Growth Performance

Abstract

Purpose: To assess the contribution of the Make in India schemes on the growth performance and effectiveness of institutional support, scheme outreach, and contribution to enterprise competitiveness and sustainable growth for MSMEs registered under Udyam in leather and footwear clusters in Tamil Nadu with regard to awareness about Make in India schemes, accessibility, impact on sales, job creation, production, technology adaptation, and market expansion.
Design, Methodology/Approach: Primary data were collected from 150 leather and footwear industry units in Vellore, Ambur, Vaniyambadi, Ranipet, and Chennai through a structured questionnaire. The EFA resulted in three factors, and the SEM (DWLS estimator in Jamovi/Lavaan) examined the relationship between these factors. Reliability testing was conducted using Cronbach’s alpha, and construct validity was assessed using the KMO and Bartlett’s tests.
Findings: The three that EFA identified have were Awareness of Government Schemes (45.18% variance), Scheme Reach and Accessibility (15.99%), and MSME Growth Performance (0.42%). However, SEM showed that awareness had a significant positive influence on scheme reach (β = 1.052, p < .001), but the direct effects on performance were not significant. The model demonstrated a good fit (CFI = 1.000, RMSEA = 0.063, SRMR = 0.061).
Practical Implication: The results indicate the need to increase government scheme awareness and access among MSMEs for policymakers. Some of the major problems are the health risks to workers and the inadequate implementation of environmental measures in tanneries. If implemented properly, the Union Budget 2025–26 Footwear and Leather Scheme can be a great opportunity for growth.
Originality/Value: This study is one of the first to consider the impact of the Make in India scheme on Udyam-registered leather and footwear MSMEs using CFA-SEM with the DWLS estimation method, which includes enterprise performance, worker welfare, and environmental dimensions.
Future Research: Policy integration of worker welfare and environmental compliance interventions in Make in India and Union Budget 2025-26 for the footwear and leather industry should be strengthened.