The Capital Meets Policy Dialogue Policymaker's Keynote: Innovate, Integrate, Elevate - Policies for a Thriving Digital Economy

 

 

Delivered at the Singapore FinTech Festival, Dr. Palanivel Thiaga Rajan, Minister for Information Technology & Digital Services, Tamil Nadu, shared a compelling vision for the state’s transformation into a global hub for startups, digital innovation, and entrepreneurship.

 

Key Highlights

1. Tamil Nadu’s Unique Strengths

  • Demographics & Economy:
    • Population: ~80 million, comparable to the 19th largest country globally.
    • Economy: $380 billion, ranking among the top 30 in the world.
  • Human Capital:
    • High literacy and education levels with 47% of youth attending college.
    • Strong female workforce participation, with 42% of women in the formal sector.
  • Industrial Base:
    • India’s #1 state in automobiles, EVs, and green energy.
    • Major contributor to intellectual property, with ~17–18% of India’s patents.

 

2. Addressing Bottlenecks

  • Quality vs. Quantity in Education:
    • Bridging skill gaps in emerging fields like AI, deep tech, and innovation.
  • Mentorship for First-Gen Graduates:
    • 85%+ of students are first-generation graduates needing guidance for career success.
  • Resource Inefficiencies:
    • Limited access to cutting-edge labs, funding, and startup space.

 

3. Strategic Government Initiatives

  • Skilling and Career Guidance:
    • Expanded programs through ICT Academy, impacting millions of students.
    • Career guidance introduced at the high school and college levels.
  • Mentorship and Exposure:
    • Startup Festival: Connects the global Tamil diaspora with budding entrepreneurs.
    • YouImagine Conference: Inspires students with real-world startup success stories.
  • Policies and Incentives:
    • Safe and Ethical AI Policy (2020, under revision for rapid advancements).
    • Data Center Policy (2021): Attracting global giants with submarine cable connectivity.
    • R&D Incentive Policy (2022): Driving patent commercialization and innovation.
    • Emerging policies in semiconductors, advanced electronics, and AVGC (Animation, Gaming).
  • Startup-Friendly Reforms:
    • Amended Tenders Act: Direct government procurement from startups for contracts <₹5M.
    • Launched the Tamil Nadu Emerging Sector Seed Fund to invest in local startups.

 

4. Resource Optimisation

  • Jigsaw Platform:
    • Aggregates underutilized government and university resources (labs, patents, equipment).
    • Startups access assets at minimal or no cost, boosting innovation.
  • Hot Desking in Tech Parks:
    • Affordable office spaces for startups in government-run parks like TIDEL and ELCO.

 

5. Inclusivity and Sustainability

  • Focused VC Funds:
    • SCST Venture Capital Fund: Supports historically underrepresented entrepreneurs.
    • NRI Fund: Mobilises global Tamil resources for local innovation.
  • Promoting Social Impact Startups:
    • Solutions for drone-based property validation, IoT kitchens, and robotic sewage cleaning.

 

6. Success Stories

  • SaaS Capital of India: Home to unicorns like Zoho and Freshworks.
  • Emerging leaders in AI (e.g., Uniphore) and deep tech.

 

Vision for the Future

Tamil Nadu aims to:

1.    Eliminate roadblocks to innovation and encourage creative thinking.

2.    Scale its startup ecosystem by leveraging human talent and state policies.

3.    Boost economic growth and job creation through inclusive and impactful entrepreneurship.

 

Conclusion

Tamil Nadu’s focus on human capital, policy innovation, and resource optimisation sets the foundation for a thriving global hub of startups and digital transformation. The journey continues to unlock potential and improve lives.

 

Speaker:

  • Dr. Palanivel Thiaga Rajan, Minister for Information Technology & Digital Services, Tamil Nadu
 
 

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