Tamil Nadu Launches Deep Tech Startup Policy, Targets INR 100 Cr Investment

Tamil Nadu Launches Deep Tech Startup Policy, Targets INR 100 Cr Investment

Tamil Nadu Launches Deep Tech Startup Policy, Targets INR 100 Cr Investment
According to the state government, the initiative seeks to support 100 deep tech startups and mobilise investments of INR 100 crore from public and private sources over the next five years.

Tamil Nadu has launched a dedicated Deep Tech Startup Policy for 2025–26, positioning it as the country's first state-level framework focused specifically on science-led, IP-intensive startups.

The policy, unveiled on Thursday, aims to address the long-standing challenge of translating laboratory research into market-ready products for high-risk deep technology ventures.

The policy was launched by Chief Minister M K Stalin at the Umagine TN technology summit. According to the state government, the initiative seeks to support 100 deep tech startups and mobilise investments of INR 100 crore from public and private sources over the next five years.

A key objective of the policy is to bridge the "lab-to-market" gap by offering structured support across the startup lifecycle, from early-stage research and development to commercial scale-up and market adoption. The framework is anchored by the Information Technology and Digital Services Department and will be implemented through the Tamil Nadu Technology (iTNT) Hub.

The policy operates alongside the broader Tamil Nadu Startup and Innovation Policy, under which iTNT already supports deep tech incubation, technology commercialisation and sector-specific programmes in collaboration with StartupTN, academic institutions and other incubators.

Deep tech startups are defined in the policy as enterprises built on advanced scientific or engineering innovations, typically at early Technology Readiness Levels. These ventures usually involve long development cycles, high capital requirements and strong proprietary intellectual property, with applications across sectors such as healthcare, energy, manufacturing and mobility.

The policy document notes that such startups often face high uncertainty in research outcomes, difficulty in accessing early funding and challenges in securing initial customers, making them less suited to conventional startup support schemes.

To address these constraints, the government has outlined a multi-pronged framework structured around five pillars: research and development support, funding and investment acceleration, infrastructure and ecosystem development, innovation workforce and knowledge partnerships, and market adoption.

On funding, the policy proposes Technology Readiness Level-linked grants for early-stage R&D up to TRL 4, followed by commercialisation and scale-up support for more mature technologies. It also includes assistance for intellectual property creation and commercialisation, along with performance-linked micro-fund support for incubators.

A Deep Tech Fund of Funds has been proposed to attract private capital, along with capital subsidies for corporates that procure from or otherwise support accredited deep tech startups.

Infrastructure support forms another pillar of the policy, with plans for deep tech research parks and cluster-specific facilities. Startups will be able to access shared infrastructure through vouchers, receive rental subsidies within government-supported parks and use sector-specific test beds to validate products in real-world environments.

The policy also introduces a "Government as Early Adopter Programme" with an annual allocation of INR 25 crore to fund pilot projects and proof-of-concept deployments that could later be scaled across public and private sectors.

Talent development measures include grants for deep tech skilling programmes, doctoral fellowships for researchers transitioning into entrepreneurship, and mentorship and international exchange initiatives to connect startups with global accelerators and experts.

The policy places emphasis on applying deep technologies to public health, clean energy, disaster resilience and social protection, aiming to balance industrial growth with social impact.

The iTNT Hub will act as the nodal agency, managing funds, coordinating departments and operating a unified digital platform for resource sharing.

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