Look What Tamil Nadu Startups Receive

Micro, small and medium enterprises (MSMEs) form the backbone of Tamil Nadu's economy, with the state housing the third-highest number of MSMEs in India. Startups, especially those in the manufacturing sector, make up a significant portion of Tamil Nadu's startup ecosystem. To support these startups, the Tamil Nadu government announced a series of infrastructure support and incentives on Thursday.

Tamil Nadu Minister for MSMEs T M Anbarasan announced this in the assembly. He also said that Tamil Nadu will also establish a Global Coordination Centre (GCC) in Dubai later this year.

Global Coordination Centre (GCC) in Dubai

The GCC will be established with the support of the Tamil diaspora. The move is part of the state government's efforts to reach out to Tamil entrepreneurs, investors and trade bodies in Dubai for investment, market access and research and development partnerships. 

Plug-and-Play Factory Spaces for Startups

Anbarasan also announced that multi-storey plug-and-play factory spaces would be created in Chennai, Hosur, and Madurai at a cost of Rs 223.9 crore by TANSI (Tamil Nadu Small Industries Corporation) and TANSIDCO (Tamil Nadu Small Industries Development Corporation). Within these spaces, a floor will be exclusively allotted for manufacturing-centric startups, which will provide much-needed infrastructure support to these startups.

Startup Hubs in Tamil Nadu

The state government is also planning to establish new regional startup hubs in Cuddalore, Hosur and Salem. This initiative follows the successful launch of regional startup hubs in Madurai, Tirunelveli and Erode, which has helped to increase awareness of the startup culture and boost startup activities in these regions. The establishment of these new regional startup hubs is expected to further stimulate the growth of the startup ecosystem in Tamil Nadu.

New Industrial Estates

TANSIDCO will establish five new industrial estates at a cost of Rs 108 crore over 185 acres of land with the potential to generate jobs for around 7,000 people. These industrial estates will provide an excellent opportunity for manufacturing-centric startups to set up their operations.

Micro Clusters

The government will establish 11 new micro clusters at a project cost of Rs 36 crore, identifying products that the state's small businesses can capitalise on. These micro clusters will provide an excellent platform for manufacturing-centric startups to collaborate with other businesses and develop new products.

Private Industrial Estates

To encourage more MSME associations to develop private industrial estates, the minimum land area required to receive a 50% subsidy for setting up such estates will be reduced from 50 acres to 10 acres. This will provide an excellent opportunity for manufacturing-centric startups to set up their operations in private industrial estates.

Special Loan Facilitation Officers

To ensure equitable growth, special loan facilitation officers will be appointed to help manufacturing-centric startups liaise with banks for loans. This will provide much-needed financial support to startups that are struggling to get the necessary funding.

These initiatives are expected to provide a significant boost to the manufacturing-centric startup ecosystem in Tamil Nadu and generate significant employment opportunities. The infrastructure support and incentives announced by the Tamil Nadu government are a welcome move and will go a long way in fostering the growth of manufacturing-centric startups in the state.

Not only this, the Tamil Nadu Government has been taking several initiatives to nurture the startup ecosystem in the country. For Tamil Nadu to achieve its target of a $1 trillion economy by 2030, Tamil Nadu Government said women’s participation is important, which will push more women to get into the startup ecosystem. According to a study conducted by the IIT-Madras, Tamil Nadu has the maximum number of women entrepreneurs in the country.

Last month an exclusive Startup Mission for women was also established along with multiple support systems for startup incubators.