Ranked as one of the top seven developed states in India by RBI’s “Multidimensional Development Index” Report 2013,Tamil Nadu is working continuously towards digitalization. As part of its proposed e-governance initiatives, a large part of government records and major state government offices have also been computerized.
Taking this a step further, with 932 startups functional in the state, Tamil Nadu state government is also keen to promote entrepreneurship in the state. Recently, the state government made public its plans to set up a USD 77.4 Mn venture capital fund to boost the startup ecosystem in the state. The fund is proposed to be run with the help of industry experts.
Mangat Ram Sharma, Principal Secretary, Department of MSME Tamil Nadu, said in a statement:
“The State government will provide money for the fund, which can start with USD7.7 Mn or USD 15.4 Mn and gradually increase it to USD 77.4 Mn A global annual sourcing fair on the scale of the Global Investors Meet is being planned to be held in Chennai to provide both domestic and international companies a platform. The department will spend USD1.5 Mn a year on this.”
And this is not the first instance, in past as well the government has launched and supported various initiatives to nurture the entrepreneurial ecosystem:
- In September 2015, Uber signed a Memorandum of Understanding (MoU) with the Tamil Nadu Government to create over 30K entrepreneurial opportunities in the state for drivers, as well as an opportunity to work with the government to together develop programmes to improve technology as part of the region’s economic development.
- In October 2015, The Madras Chamber of Commerce (MCCI) launched SEE (Startup Entrepreneurial Ecosystem) to mentor and provide an ecosystem for startups.
- In March 2016 Nasscom announced a partnership with Tamil Nadu Government to open the state’s first warehouse in Chennai.
- In September 2016, the state government decided to offer maximum support to startups, provided they follow the mandatory rules and regulations in order to create a fair economic system.
- In December 2016, the Amma Venture Capital Fund with a corpus of USD29.5 Mn was also announced. The fund will work in conjunction with the functioning biotech incubation centre in Chennai.
The creation of several active mentor organisations like TiE (The Indus Entrepreneurs), CIIE Startupreneurs, IIT Alumni Clubs, and Nasscom’s Million Dollar startup programme, has definitely given a push to the startup ecosystem in Chennai.