Tamil Nadu is bursting with entrepreneurial potential. The second wealthiest state by GDP and the second most industrialized state in India, it has the largest number of factories in the nation. It is ranked the most economically free state by the Economic Freedom Rankings for the States of India and as the Best Performer by the Indian States’ Startup Ranking.

Chennai and Coimbatore are the core hubs in the Tamil Nadu ecosystem with Chennai among India’s leading startup communities. StartupTN, a state government mission under the Micro, Small, and Medium Enterprises Department operates in 10 districts as hubs catalyzing startup activities throughout the state. Tamil Nadu has seen a notable increase in the number of registered startups, exceeding 8.583 in 2024, and has attracted significant VC investment. The ecosystem is supported by more than 120 incubators, the most of any state in India.

Tamil Nadu’s Startup Policy 2023 aims to establish 15,000 startups and position the state as one of the top 20 global startup destinations by 2032. The State of Tamil Nadu provides targeted policies and implements support through StartupTN and multiple government departments have created startup-specific programs for their respective sectors. Additionally, tremendous efforts have been focused on improving the ease of doing business.

StartupTN has implemented multiple funding schemes, including TANSEED, the TN SC/ST Startup Fund for marginalized communities, the TN Emerging Sector Seed Fund, and the Fund Of Funds, to fulfill the ecosystem’s funding requirements. It has launched platforms such as MentorTN, TANFUND, AngelsTN, TN Catalyst, and Open Innovation Portal to address multiple gaps between founders and enablers. StartupTN launched initiatives such as StartupTN Smart Card, BrandLabs, Launchpad, S2Gs, and Centre of Innovations to support startups and aspirants.