Tamil Nadu Launches India’s First DeepTech Startup Policy With ₹100-Crore Push

Tamil Nadu has formally positioned itself at the forefront of India’s emerging technology landscape with the launch of the country’s first dedicated DeepTech Startup Policy, unveiled by Chief Minister M.K. Stalin at the UmagineTN 2026 technology summit. The initiative marks a significant shift in the state’s innovation strategy, aiming to transform Tamil Nadu from a traditional IT-services hub into a global centre for advanced research, product development, and high‑tech entrepreneurship.

Comprehensive Summary

A Landmark Policy With ₹100-Crore Commitment

The Tamil Nadu DeepTech Startup Policy 2025–26 allocates ₹100 crore to support the growth of 100 deep‑tech startups, offering structured assistance across the innovation lifecycle—from early‑stage grants and incubation to market access and global partnerships.

The policy focuses on high‑impact sectors, including:

• Artificial Intelligence
• Blockchain
• Semiconductors
• Robotics
• Spacetech
• Electronics manufacturing
• AVGC (Animation, VFX, Gaming & Comics)

This initiative comes at a time when deep‑tech funding in India has reached record levels, with homegrown startups raising $530 million across 87 deals in 2025.

Key Objectives and Targets

According to official policy documents and statements from state leaders, Tamil Nadu aims to achieve the following milestones:

• Support 100 deep‑tech startups through grants, incubation, and flexible funding.
• Mobilise ₹100 crore in public and private investments, including venture capital.
• Facilitate 10 technology‑transfer deals between academia and industry.
• Increase annual patent filings by 25% among deep‑tech startups.
• Train over 10,000 students and professionals in advanced technologies such as AI, ML, robotics, and biotech.
• Award 10 research fellowships to strengthen R&D capacity.
• Establish sector‑wise test beds for product validation and pilot deployment.
• Create a network of Centres of Excellence to support innovation and commercialisation.

The iTNT Hub will serve as the nodal agency overseeing implementation, fund management, and stakeholder coordination.

Ecosystem Development and Government Support

The policy introduces several ecosystem‑building mechanisms designed to accelerate innovation:

• Government-as-Early-Adopter Programme to support pilot deployments and field validation of new technologies.
• Innovation-friendly procurement schemes to help startups access private‑sector and global markets.
• Support for incubators, accelerators, R&D labs, and corporate innovation centres, ensuring a broad and inclusive ecosystem.

Startups must have a registered office or operational presence in Tamil Nadu and employ at least 25% of their workforce within the state to qualify for financial support.

Major AI & VFX Investments Announced

The policy launch coincided with significant private‑sector commitments at UmagineTN 2026, signalling strong investor confidence in Tamil Nadu’s deep‑tech ambitions. Key MoUs include:

• Better Compute Works: ₹5,000‑crore investment to establish an AI data centre, creating 1,450 jobs.
• Eros GenAI: ₹3,600‑crore expansion of its AI R&D centre, generating 1,000 jobs.
• Phantom Digital Effects: ₹100‑crore expansion of its VFX operations in Chennai, adding 1,000 jobs.

These investments reinforce the state’s growing appeal to global capability centres, AI labs, and advanced R&D units.

Chief Minister Stalin’s Vision

During the launch, CM Stalin emphasised Tamil Nadu’s transition from an IT‑services economy to a technology‑driven innovation hub, crediting the state’s talent pool and sustained investment in R&D as key drivers of this shift.

He highlighted initiatives such as distributing laptops with AI‑chatbot access to students, framing them not as freebies but as investments in the future workforce.

Overall Significance

Tamil Nadu’s DeepTech Startup Policy marks a pivotal moment in India’s innovation landscape. By combining financial incentives, ecosystem development, academic partnerships, and global investment, the state aims to build a globally competitive deep‑tech hub capable of driving industrial growth and contributing to its long‑term goal of becoming a $1‑trillion economy.