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Tamil Nadu launches deeptech startup policy with ₹100-Cr boost

With the rollout of a dedicated DeepTech Startup Policy 2025–26, Tamil Nadu has taken a decisive step toward strengthening science-led, IP-intensive entrepreneurship. Billed as the country’s first comprehensive framework of its kind, the policy aims to close the persistent “lab-to-market” gap that often slows the progress of high-risk, research-driven deeptech startups.

The Chief Minister of Tamil Nadu, M. K. Stalin, formally launched the policy at the Umagine TN technology summit. Through this initiative, the state plans to support 100 deeptech startups while mobilising Rs 100 crore in public and private investments over the next five years. Consequently, the government expects the policy to accelerate innovation and improve commercial outcomes for advanced technologies.

According to the policy, Tamil Nadu will bridge the “lab-to-market” gap by offering structured, lifecycle-based support that spans early-stage research and development through scale-up and market adoption. In parallel, the Information Technology and Digital Services Department will anchor the policy, while the Tamil Nadu Technology (iTNT) Hub will oversee implementation. Importantly, this framework complements the broader Tamil Nadu Startup and Innovation Policy, under which iTNT already supports deeptech incubation, technology commercialisation, and sector-specific programmes in partnership with StartupTN and other incubators.

The policy sets ambitious targets. These include a 25% increase in annual patent filings by deep tech startups, at least 10 technology transfer or licensing deals from academic and R&D institutions, training over 10,000 students and professionals in deeptech skills, and facilitating global market access for 50 startups. Together, these goals aim to create a robust pipeline from research to revenue.

Deeptech startups, as defined in the policy document, are ventures built on advanced scientific or engineering breakthroughs, typically operating at early Technology Readiness Levels (TRL). They are characterised by strong proprietary intellectual property, long development cycles, and the ability to create entirely new markets or significantly disrupt existing ones across sectors such as healthcare, energy, and manufacturing.

However, the policy also acknowledges the structural challenges these startups face, including high R&D uncertainty, capital intensity, and difficulty in securing early customers—issues that conventional startup schemes are often ill-equipped to address. To counter this, the government has introduced a multi-pronged framework organised around five pillars: research and development support, funding and investment acceleration, infrastructure and ecosystem development, innovation workforce and knowledge alliances, and deep tech adoption and market expansion.

On the funding front, the policy offers TRL-linked R&D grants for early-stage research up to TRL 4, followed by commercialisation and scale-up support at higher readiness levels. Additionally, it includes assistance for IP creation and monetisation, along with performance-linked micro-fund support for incubators. Furthermore, a proposed DeepTech Fund of Funds and capital subsidies for corporates that engage with accredited deeptech startups aim to catalyse private investment and industry participation.

In terms of infrastructure, the policy promises deeptech research facilities and cluster-specific parks, voucher-based access to shared infrastructure, rental subsidies within government-supported parks, and sector-focused test beds. These measures will allow startups to validate products in real-world environments. Notably, a “Government as Early Adopter Programme” with an annual budget of Rs 25 crore will enable pilot deployments and proof-of-concept projects that can later scale across public and private sectors.

Talent development and knowledge exchange also feature prominently. The policy proposes grants for deep tech skilling programmes, doctoral fellowships for researchers transitioning into entrepreneurship, and mentorship and international exchange initiatives. These efforts will connect Tamil Nadu’s startups with global accelerators, twin-city partners, and overseas experts.

At the same time, the policy places strong emphasis on applying deep tech to social priorities, including public health, clean energy, mobility, disaster resilience, and social protection. Through this focus, Tamil Nadu aims to balance industrial competitiveness with inclusive and sustainable growth.

Finally, the iTNT Hub will function as the nodal agency, managing funds, operating a unified digital platform for infrastructure and resource sharing, and coordinating with other government departments, the policy stated.

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BRL Editorhttps://businessreviewlive.com
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