Tamil Nadu shocked everyone with the startup ranking by showing record-breaking growth in the last  few years according to the Department of Promotion for Industry and Internal Trade (DPIIT). The sudden decrease in startups and layoffs since the arrival of covid 19 to a four-fold increase in startups  after the DMK govt was formed in 2021.  

The state was at the bottom of the list in 2018 but managed to not only rise in the list but also had  four times the increase in startups as of present. Around 2250+ startups were formed only in the year  2022 according to Chief Minister M K Stalin who then applauded the state’s startup ecosystem success. The state was also said to be the “best performer” according to DPIIT’s fourth edition of the states’  startup ranking. TANSEED also played a vital role in this remarkable achievement. TANSEED is the  Government of Tamil Nadu’s flagship seed fund initiative for Startups. This policy aimed at reducing the gap in fund requirements of Startups during their early stages. Through TANSEED the government  provides seed funding for all founders of startups who are eligible in order to help them develop their  products and scale up their business.  

Image source: Startup TN 

TANSEED offers seed fund support of up to 15 lakh INR to rural impact, green tech, and women-led startups and up to 10 lakh INR to others outside these three categories. For eligibility, the application  process, and how you can utilize this scheme, you can visit the official site of startupTN. In 2023 the  Startup and Innovation Policies were introduced. The number of start-ups registered by the state till  2021 was 2,000+. At present, the total start-ups registered for the same are around 8400+. We can see  a four-fold increase in three years. In addition, the total number of start-ups by women also went up from 900+ to 3160+ in the same period, making the state first in the rankings released by the center for creating and maintaining a favorable environment for start-ups. 

The Govt. also launched the TN SC/ST Startup fund to help those in low caste. About 30 crore was  allocated when the scheme was launched in 2022-2023 and it increased to 50+ crore in 2023-2024. An official said that so far investments of 55.2 crore have been guaranteed in 38 companies owned by  SC/ST. The Govt. has so far launched TANFUND (an online portal to link startups in need of funds to  investors). Mentor TN (platform to connect experts with startups) and TANSEED. These are some of  the “secrets” behind the four-fold increase in startups.  

Conclusion: 

Tamil Nadu has seen a four-fold increase in startups since 2021. The reason behind this success is initiatives like TANSEED and TANFUND, which have provided vital support to emerging ventures.  Moreover, the Tamil Nadu Startup and Innovation Policy with schemes like the TN SC/ST Startup Fund, reflects the government’s unwavering commitment to encourage innovation and more startups.  Through collaborative efforts and strategic interventions, Tamil Nadu has emerged as a leading hub for  startups, driving socio-economic development and inclusive prosperity.