Lok Sabha Question No. 1702 (UNSTARRED), answered on 2026-02-10
Subject: Promoting Startup Ecosystem in Tamil Nadu
Ministry: COMMERCE AND INDUSTRY
Asked by: Shri Tharaniventhan M S

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE

## LOK SABHA

UNSTARRED QUESTION NO. 1702.

TO BE ANSWERED ON TUESDAY, THE 10 TH  FEBRUARY, 2026.

## PROMOTING STARTUP ECOSYSTEM IN TAMIL NADU

## 1702.  SHRI THARANIVENTHAN M S:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state: वाणिज्य एवं उद्योग मंत्री

- (a) the total number of start-ups registered and recognized under the Start-up India initiative in Tamil Nadu so far;
- (b) the specific measures taken to promote start-up ecosystems in Tamil Nadu, especially in tier-2 and tier-3 cities;
- (c) the steps the Government has taken to ensure adequate access to funding, mentorship, and infrastructure for start-ups from Tamil Nadu;
- (d) the manner in which the Government plan to support start-ups in traditional sectors and rural areas to generate employment and inclusive growth; and
- (e) whether  the  Government  proposes  any  new  schemes  or  incentives  to encourage innovation and entrepreneurship among youth in Tamil Nadu, if so, the details thereof?

## ANSWER

## वाणिज्य एवं उद्योग मंत्रालय में राज्य मंत्री ( श्री णिणिन प्रसाद ) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI JITIN PRASADA)

- (a) to (e): As per eligibility conditions prescribed under G.S.R. notification 127 (E) dated 19th  February  2019,  entities  are  recognised  as  'startups'  under  the  Startup India initiative by the Department for Promotion of Industry and Internal Trade (DPIIT).

As on 31 st     December 2025, a total of 13,780 entities have been recognized as startups in the State of Tamil Nadu.

Under the Startup India initiative, the Government unveiled an action plan for startups comprising of schemes and incentives envisaged to create a vibrant startup ecosystem in the country. The Action Plan comprises of 19 action items spanning  across  areas  such  as  'Simplification  and  handholding',  'Funding support and incentives' and 'Industry-academia partnership and incubation'.

The Government also implements periodic exercises and programs including States' Startup Ranking, National Startup Awards, and Innovation Week which play an important role in the holistic development of the startup ecosystem. The Government also encourages and supports ecosystem-led initiatives such as

Startup  Mahakumbh  which  serve  as  a  vibrant  platform  for  stakeholders  to network and collaborate. Initiatives to improve market access and enable public procurement  support  startups  in  growing  and  scaling  up  their  businesses. These measures are complemented by regulatory reforms and other ecosystem development events and programs. Specific measures undertaken to promote the startup ecosystem across States/Union Territories (UTs), cities, towns, and rural areas are placed as Annexure-I .

Further,  specifically  in  the  State  of  Tamil  Nadu,  recognised  startups  have availed funding and incubation support through the flagship funding schemes under  the  Startup  India  initiative.  As  of  31st  December  2025,  Alternative Investment Funds (AIFs) supported under the Fund of Funds for Startups (FFS) have invested Rs. 1394.19 crore in startups from Tamil Nadu. Under the Startup India Seed Fund Scheme (SISFS), supported incubators have approved Rs. 54.87  crore  to  startups  from  Tamil  Nadu.  Additionally,  under  the  Credit Guarantee Scheme for Startups (CGSS),  startups  from  the  State  have  been guaranteed loans amounting to Rs. 84.6 crore. 312 startups from Tamil Nadu have also received certificate of eligibility under Section 80-IAC of the Income Tax Act 1961, to claim a deduction of an amount equal to 100% of the profits and  gains  derived  from  eligible  business  for  three  consecutive  assessment years.

Additionally,  the  Government  has  undertaken  several  measures  to  support startups  across  sectors  and  regions,  including  traditional  sectors  and  rural areas, and to foster a culture of innovation and entrepreneurship among youth across  the  country,  including  in  the  State  of  Tamil  Nadu.  Details  of  such measures are placed as Annexure-II.

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## ANNEXURE  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  to  (e)  OF  THE  LOK  SABHA UNSTARRED QUESTION NO. 1702 FOR ANSWER ON 10.02.2026.

The  details  of  various  measures  being  undertaken  to  promote  the  startup  ecosystem  across States/Union Territories (UTs), cities, towns, and rural areas are as follows:

## 1. Capacity Building and Handholding

Capacity building workshops are undertaken throughout the year across regions including nonmetro cities under the States' Startup Ranking ('SRF') exercise to promote and handhold States and UTs in developing regional ecosystems. Monitoring, capacity development, and handholding sessions are also conducted specifically for incubators beyond metro cities and regions.

## 2. Outreach and Awareness

Outreach and awareness activities for  startups are  organized  across  the  country  including  in areas beyond metropolitan cities. These activities include encouraging entrepreneurs from nonmetropolitan cities and enabling opportunities for funding, incubation, mentorship and business linkages  in  collaboration  with  State/UT  administrations.  Various  startup  showcases  are  also organised where startups pitch their business proposals to investors and participate in capacity building  activities.  The  programs  implemented  under  the  Startup  India  initiative  are  also propagated through various social media platforms.

## 3. Ecosystem Development Events and Programs

Various  national  ecosystem  development  events  and  programs  are  held  such  as  the  Startup Mahakumbh, which fosters innovation and entrepreneurship by bringing the ecosystem together from various parts of the country; ASCEND (Accelerating Startup Caliber & Entrepreneurial Drive) sensitization workshops on startups and entrepreneurship are conducted across North Eastern States to support upcoming entrepreneurs from the region; and the Startup India Innovation week is  held  around the National Startup Day i.e., 16th January, to celebrate entrepreneurship and promote innovation with stakeholders from across India.

## 4. International Exposure and Linkages

The Startup20 Engagement Group was institutionalised under India's G20 Presidency to facilitate harmonisation and cross collaboration amongst the largest global economies. The meetings and engagements of Startup20 Engagement Group under India's G20 Presidency were held across the country providing access to global market, visibility and resources of India's regionals startup ecosystems. International linkages are further developed through international Government to Government  partnerships,  participation  in  international  forums,  hosting  of  global  events,  and international bridges with different countries that aid in promoting cross collaboration.

## 5. Encouraging Ecosystem Collaboration

The Government launched the Startup India Hub portal for stakeholders of the entrepreneurial ecosystem in India to discover resources, information, and various benefits under the Startup India initiative on a common digital platform. This portal enables various programs and initiatives to be accessed digitally, improving accessibility for entrepreneurs and startups even from nonmetro cities and regions.

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## ANNEXURE-II

## ANNEXURE REFERRED TO IN REPLY TO PARTS (a) to (e) OF THE LOK SABHA UNSTARRED QUESTION NO. 1702 FOR ANSWER ON 10.02.2026.

Key measures undertaken by the Government to promote entrepreneurship across the  country  including  rural  areas,  and  among  the  youth  across  the  country, including in the State of Tamil Nadu, are as follows:

1.  The  Ministry  of  Skill  Development  and  Entrepreneurship  (MSDE)  through  its autonomous organizations, namely National Institute for Entrepreneurship and Small Business Development (NIESBUD) and Indian Institute of Entrepreneurship (IIE) has taken  various  initiatives  to  promote  entrepreneurship  development  amongst  all sections of the society. These initiatives include, Swavalambini programme, Entrepreneurship  Awareness  Programmes  (EAP),  Entrepreneurship  Development Programmes (EDP), Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyaan (PMJANMAN), Entrepreneurship Development Centres (EDC) in North East Region's Educational Institutions, Dharti Aaba Janjatiya Gram Utkarshh Abhiyan (DAJGUA), Pradhan Mantri Surya Ghar Muft Bijli Yojana Scheme (PM SGMBY Scheme), and Capacity Building Programme for Fair Price Shop Owners.
2.  Ministry  of  Micro  Small  &  Medium  Enterprises  (MSME)  is  implementing  the Entrepreneurship and Skill Development Programme (ESDP) which aims to motivate the youth/aspiring entrepreneurs to consider self-employment or entrepreneurship as one of the career options.
3.  The All India Institute of Ayurveda (AIIA), an autonomous body under the Ministry of Ayush,  has  established  the  AIIAIncubation  Centre  for  Ayurveda  Innovation  and Entrepreneurship  (AIIA-iCAINE)  to  nucleate  a  cluster  of  new  age  ventures  and  to promote entrepreneurship leveraging the academic knowledge.
4.  The Atal Innovation Mission (AIM) of NITI Aayog fosters innovation and entrepreneurship among India's youth through flagship programs like Atal Tinkering Labs (ATLs) and the Community Innovator Fellowship (CIF).
5.  The Ministry of Education's Innovation Cell (MIC) and All India Council for Technical Education  (AICTE)  promotes  innovation  and  entrepreneurship  across  educational institutions.
6.  Youth-centric  initiatives  have  been  introduced  by  the  Ministry  of  Youth  Affairs  and Sports  such  as  setting  up  of  the  autonomous  body  called  Mera  Yuva  Bharat  (MY Bharat),  the  purpose  of  it,  is  to  provide  an  over-arching  institutional  mechanism powered by technology for youth development and youth-led development through Experiential Learning  Programs  (ELPs),  volunteering  opportunities,  mentorship programme, etc.
7.  Under the Ministry of Defence the Scheme for Innovations for Defence Excellence (iDEX)  and  Acing  Development  of  Innovative  Technologies  with  iDEX  (ADITI)  are fostering  innovation  and  technology  development  in  defence  and  aerospace  by engaging startups.
8.  Under the Department of Science & Technology, the Research, Development, and Innovation (RDI) Scheme has been approved to incentivize private sector participation in  research  and  development  (R&D).  Further,  DST  is  implementing  the  National Initiative for Developing and Harnessing Innovations (NIDHI) to promote innovation and  entrepreneurship  among  the  youth.  The  initiative  comprises  NIDHI-PRAYAS (prototype grant support), NIDHI-EIR (Entrepreneur-in-Residence fellowships), NIDHIiTBI (Inclusive TBIs in Tier-II and Tier-III regions). The DST is also implementing the National Quantum Mission (NQM), under which four thematic hubs (T-Hubs) have been established.
9.  The Anusandhan National Research Foundation (ANRF) has initiated the program, Mission  for  Advancement  in  Highimpact  Areas  (MAHA)  to  address  priority-driven, solution-focused research in mission-mode.
10.  The  Council  of  Scientific  and  Industrial  Research  (CSIR)  through  its  constituent laboratories/institutes, is implementing  the  'Integrated  Skill Initiative  Program', intending  to  equip  young  minds  with  the  necessary  technological  skills  through conducting training programs and workshops.
11.  The  Department  of  Biotechnology  (DBT)  has  established  biotechnology  incubation and  pre-incubation  centres  across  States  &  Union  Territories  (UTs)  under  the BioNEST (Bioincubators Nurturing Entrepreneurship for Scaling Technologies) and EYUVA (Encouraging Youth for Undertaking Innovative Research Activities) schemes.
12.  Ministry of Electronics and Information Technology (MeitY) is undertaking initiatives such  as  GENESIS  (Gen-Next  Support  for  Innovative  Startups)  Scheme,  TIDE  2.0 (Technology  Incubation  and  Development  of  Entrepreneurs)  Scheme,  and  IndiaAI Mission to promote the startup ecosystem.
13.  Under the Government's Skill India Mission (SIM), MSDE provides skill, re-skill and up-skill training through an extensive network of skill development centres/institutes etc. under various schemes, viz. Pradhan Mantri Kaushal Vikas Yojana (PMKVY), Jan Shikshan Sansthan (JSS), National Apprenticeship Promotion Scheme (NAPS) and Craftsman Training Scheme (CTS) through Industrial Training Institutes (ITIs), across the country.
14.  Under the Ministry of Rural Development, the Deendayal Antyodaya Yojana-National Rural  Livelihoods  Mission  (DAY-NRLM)  through  Start-up  Village  Entrepreneurship Programme (SVEP) supports Self-Help Groups (SHGs) and their family members to set-up small enterprises in the non-farm livelihoods sector.
15.  The  Ministry  of  Minority  Affairs  (MoMA)  implements  various  skill  development schemes  namely  'Seekho  Aur  Kamao',  'Upgrading  the  Skills  and  Training  in Traditional Arts/Crafts for Development (USTTAD)', 'Nai Roshni' and 'Nai Manzil' for socio-economic  development  of  youth  from  minority  communities.  These  schemes and initiatives have now been converged into an integrated Scheme called 'Pradhan Mantri Virasat Ka Samvardhan' (PM VIKAS).
16.  The Stand-up India Scheme was launched with an objective to provide loans from Scheduled Commercial Banks (SCBs) of value between Rs.10 lakh and Rs.1 crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and one woman borrower per bank branch for setting up a greenfield enterprise in the manufacturing, services or trading sector and also for activities allied to agriculture.
17.  The Department of Agriculture & Farmers' Welfare (DA&FW), Government of India is implementing 'Innovation and Agri-Entrepreneurship Development' programme under Rashtriya  Krishi  Vikas  Yojana  (RKVY)  from  2018-19  onwards  with  an  objective  to promote  innovation  and  agri-entrepreneurship  by  providing  financial  support  and nurturing an incubation ecosystem in the country.

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