Parliament Question: Promoting Startup Ecosystem in Tamil Nadu

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 10TH 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 31st 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 asStartup 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. ******ANNEXURE-I 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 non- metro 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 non- metropolitan 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 non- metro cities and regions. ********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 AIIA- Incubation 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), NIDHI- iTBI (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 E- YUVA (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. ********