In a significant push to decentralise innovation, the Tamil Nadu government's startup promotion agency, StartupTN, has officially launched rural startup communities in eight villages across the central part of the state. This initiative, part of the Gramam Thorum Puthozhil (GTP) scheme, aims to foster tech-based entrepreneurship beyond tier-II cities and into the heart of the state's agrarian landscape.
First Phase Targets Central Districts
The initial phase of the rollout has been coordinated through the Trichy and Thanjavur satellite hubs, which have identified four villages each. The goal is to support aspiring rural entrepreneurs by providing not just financial assistance but also regular workshops to help validate and refine their business ideas. State officials have revealed an ambitious plan to eventually identify 100 villages through 10 such satellite hubs across Tamil Nadu.
A key incentive under the GTP scheme is a subsidy of up to ₹1 lakh for each recognised rural startup community. To guide these new ecosystems, an existing rural startup or a nearby college-run pre-incubation centre will act as a nodal point or spokesperson. These guides will assist community members with navigating government funding, securing bank loans, handling registration and GST filing, and finding market access.
Focus on IT, FinTech, and Agri-Value Addition
Prabhu Karupannan, lead of the StartupTN Trichy hub, highlighted the existing potential, noting that IT and fintech startups are already operating successfully from small villages in the central region, generating local employment. "We are also focusing on value-added food production in agrarian areas," Karupannan added, pointing to the scheme's tailored approach.
A practical example of this model is already visible in Perambalur district, where a startup community has been launched in Esanai village with support from a local fintech firm. A facilitation centre has been set up in the village community hall, creating a physical space for youth to congregate and brainstorm startup ideas.
Currently, the distribution of operational rural startup communities is as follows:
- Pudukottai district: 3 communities
- Tiruvarur district: 2 communities
- Thanjavur district: 1 community
- Mayiladuthurai district: 1 community
- Perambalur district: 1 community (Esanai)
More such communities are slated to be launched in January 2024.
Bridging the Awareness Gap
Despite the promising framework, grassroots awareness remains a challenge. R Deepan, Managing Director of Adcaps Fincub in Perambalur, observed, "People in our village are slowly becoming aware of startups, but many are still unaware of government subsidies and grants available for branding and marketing." This underscores the critical role of the community spokespersons in bridging this information gap.
The push into rural areas comes against a backdrop of strong startup growth in the region. StartupTN data shows that in the past six months, the number of startups in Trichy district rose by 15% (from 396 to 453), while Thanjavur saw a 25% increase (from 271 to 340). The rural initiative is strategically designed to build on this momentum and create a new wave of first-generation entrepreneurs from non-urban centres, ultimately driving inclusive economic growth across Tamil Nadu.
