‘3-pronged plan to spur TN start-up boom’

G BALACHANDAR Chennai September 28 | Updated on January 16, 2018 Published on September 28, 2016

With its traditional strengths, Tamil Nadu can unleash a new entrepreneurial wave for a start-up boom through a three-pronged approach, according to KK Raman, Partner, Management Consulting, KPMG India.

“While Tamil Nadu is already one of the preferred destinations for start-ups in the country, a strong focus on a better ecosystem, more financing options and policy support can propel the state to a dominant position,” he told BusinessLine on the sidelines of CII’s ICT conference Connect 2016.

He felt the ecosystem for start-ups needed to be more robust in the state. A good number of organisations on the lines of IIT-M Research Park will help raise a cadre of budding entrepreneurs.

“Such research parks should come up in non-metro locations also, as Tamil Nadu is one of the best states to offer alternative destinations for businesses. Other than Chennai, there are at least 3-4 locations that hold good potential to nurture entrepreneurs,” he added.

Financing systems also need a renewed focus as places such as Bangalore have emerged stronger because of the interest of venture capitalists and angel investors.

Policy support

The third requirement is state-level policy support. While Digital India and other Central schemes can promote start-ups, Tamil Nadu government could also provide support in terms of a favourable policy framework.

“The state has natural strengths in terms of vibrant automotive, healthcare and engineering services sectors, among others. With policy and other support initiatives, the state can carve a niche for itself in the start-up landscape,” he added.

At the conference, a report on ‘Building the Digital State: Fostering the Ecosystem’ prepared by KPMG-CII was released. The report analysed the strengths and capabilities in the information technology and start-up ecosystem.

Published on September 28, 2016
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