The Tamil Nadu State Planning Commission has released a significant report, ‘Start-Up Ecosystem in T.N.: Opportunities and Challenges,’ which proposes crucial strategies to invigorate the state’s burgeoning startup landscape. At its core, the report advocates for making government schemes and funding more accessible and straightforward, alongside boosting market opportunities with a particular emphasis on public procurement.
One of the key recommendations highlights that a simpler application process for state government funding would significantly encourage more entrepreneurs to tap into these vital resources. Beyond funding, the report stresses the importance of fortifying the talent ecosystem and support networks, ensuring both social and geographical inclusivity, and adopting successful strategies from other regions.
Submitted to Chief Minister M.K. Stalin by SPC ex-officio vice-chairperson Udhayanidhi Stalin and SPC executive vice-chairperson J. Jeyaranjan in Chennai on October 14, 2025, the report acknowledges the progress made.
In his foreword, Mr. Jeyaranjan recognized that ‘academic incubators, government funding, and public procurement have been pivotal in fostering the success of Tamil Nadu’s startup scene, especially for non-IT ventures.’ However, he also candidly noted that ‘as with any evolving ecosystem, challenges persist.’
He further elaborated on these challenges: ‘Securing funding remains a critical hurdle, particularly for manufacturing startups that also require robust infrastructure. Attracting and retaining skilled talent continues to be difficult, and the regulatory framework needs further simplification to enhance operational efficiency.’ He emphasized that drawing lessons from the best practices of other states would be vital for the effective implementation of startup policies.
While Tamil Nadu’s existing entrepreneurship policies already cover most essential areas like identifying and nurturing entrepreneurs and providing financial aid, the report urges startups to proactively utilize the government’s diverse range of schemes and initiatives.
To tackle funding gaps, the government has introduced various programs, such as TANSEED, designed to stimulate private capital investment in startups. Despite these efforts, the report reveals that participation in public procurement by startups remains low, primarily due to a lack of awareness, complex application procedures, and demanding eligibility criteria. Addressing these barriers will be crucial for the ecosystem’s continued growth.