Tamil Nadu's startup ecosystem is valued at $28B and is expanding rapidly at 23% annually. The state is home to 120+ incubators while its capital Chennai hosts 6,152 startups, offering entrepreneurs extensive resources and robust support networks to accelerate their growth and scale their businesses.
Tamil Nadu's Economic Survey for 2024-25 projects a growth rate exceeding 8%, showcasing the ecosystem’s resilience amid global and national uncertainties. This steady expansion is fueled by policy reforms, infrastructure upgrades, and economic diversification. Tamil Nadu's manufacturing sector has advanced significantly, attracting global giants like Cisco, Google, and Ford by integrating into global supply chains and leveraging labor-intensive industries. Its success is driven by a large, low-wage workforce, including migrants and women.
Tamil Nadu achieved a milestone by registering 11,155 startups – including within that 5,560 women-led startups – with the Department for Promotion of Industry and Internal Trade, under the Union Ministry of Commerce and Industry.
In August 2024, Tamil Nadu government-backed StartupTN facilitated startups to raise $9.6 million through its partner network of 200+ VC firms. The initiative aims to foster the startup ecosystem, and promote innovation, entrepreneurship-driven employment, and sustainable economic growth. StartupTN's Tamil Nadu Global Startup Summit is a premier platform connecting startups, investors, and policymakers to make Tamil Nadu the #1 state in innovation.
The Tamil Nadu government launched a special seed fund to empower startups led by persons with disabilities and transgender individuals, aiming to drive inclusive growth by providing financial support and helping ventures launch and thrive. The Gramam Thorum Puthozhil (Establishing Start-ups in Villages) scheme will launch in 2025, focusing on inclusive entrepreneurship, rural innovation, and sustainable economic growth.
The government is setting up Global Startup Coordination Centres in major hubs like Dubai, Singapore, and the U.S. to link the state’s startups with international markets, promote global networking, and support market expansion for local entrepreneurs.
