Startups! Tamil Nadu Budget Unveils Gifts For You

During the DMK government’s third Budget since it came to power in May 2021, the Tamil Nadu Government has announced a slew of measures to boost industrial sector in the state and attract global investments in sectors like startups and MSMEs. 

Tamil Nadu Finance Minister Palanivel Thiaga Rajan presented the State Budget for the financial year 2023-24 in the State Legislative Assembly in Chennai today. 

He revealed the state government’s plans to connect the startup and small enterprises in the state with the global investors, boost women entrepreneurship by establishing exclusive ‘Startup Mission’ for women, develop IT infrastructure and support business incubators to nurture startup ecosystem in the state. 

In his budget speech, Rajan said the next Global Investors Meet will be organized in Chennai next year which will give a platform to the industries to connect with the global markets and investors.

Global Investors Summit in Chennai in 2024

The Tamil Nadu government has allocated Rs 3,268 crore for the industrial department for FY 24. The finance minister announced that the next Global Investors Summit will be held in the state capital on January 10-11, 2024 for which a budget of Rs 1000 crore has been earmarked.

“This will be a platform that will showcase the investment friendly climate prevailing in the State and also its immense strengths and attractiveness as an investment destination,” the finance minister said.

“It will also facilitate our industries, MSMEs and Startups to connect with the global markets and Investors,” he added.

Exclusive ‘Start-up Mission’ for women”

Women entrepreneurs continue to face difficulties in accessing adequate, timely credit and marketing of products. To address these challenges, Rajan said, “The State Government will establish an exclusive ‘Start-up Mission’ for women”.

In the last two years Tamil Nadu has inked as many as 221 Memoranda of Understanding (MoU) for investment commitments worth Rs.2,70,020 crore with employment opportunities for 3,89,651 persons. 

“To consolidate the benefits from these investments, guided by the vision to steer Tamil Nadu towards a one trillion-dollar economy by 2030,” Rajan said. 

IT infra to get a push

To promote Tamil Nadu as a global hub for IT/ITeS and to meet the increasing demand for quality office space, the state government will establish “Tamil Nadu Tech City (TNTech city)” at Chennai, Coimbatore and Hosur. 

In a move that will boost the startup ecosystem in the state, the State Finance Minister said, “To facilitate functioning of IT/ITeS, GCC, FinTech and Startups, the TN Tech city will house centre of excellence, innovation plaza, convention centres, recreation facilities and other necessary infrastructure.” 

Separate vertical in StartupTN for Incubators

Tamil Nadu has one of the largest numbers of business incubators in the country. Recognizing the need to provide handholding support to the state’s incubators, the budget also proposed a support system for them. 

“With a view to supporting business incubators who propose to specialise in areas like climate tech, rural tech, agri tech and marine tech, StartupTN will assist them in raising funds from various sources to set up Centres of Excellence and will also bear up to 40 per cent of the cost of such upgradation,” Rajan said. 

The Minister committed that a separate vertical will be created in StartupTN to further the incubator eco-system in the State.

Industrialization will be the focus

Reiterating that the state government has a focus to industrialize the remote districts as well in the state, 85 projects will be set up in industrially backward districts with an investment commitment of Rs.1,44,028 crore and employment potential for 2,14,478 persons.

To promote growth of IT and ITeS sectors in Tier II cities of the State, the Government is setting up 7 Neo-TIDEL parks across the State. Further to this, the Finance Minister committed that IT Parks, each with an approximate built up area of one lakh sq ft, will be set up at Erode, Tirunelveli and Chengalpattu. These parks will provide employment opportunities for 4,000 persons.

He told the assembly that the state's revenue deficit reduced by Rs 30,000 crore from Rs 62,000 crore — nearly 50 percent — in the last one year. 

The state finance minister further announced that the government will implement a special agency to transform Tamil Nadu into a green state with a contribution of more than 50 percent renewable energy in total power generation by 2030.