It is need of the hour for the Government of Tamil Nadu to create a favourable environment for start-ups, a report has said.

“Business transformations are driven by digital advancements, introducing disruptive products and services for enhancing customer experiences. India has witnessed a significant growth in number of startups over the last few years, especially in technology, e-commerce…,” the KPMG-CII report said.

The report was released during a two-day conference organised by CII. Noting that the start ups were future in building the economy, the report said, “It is the need of the hour for the Government of Tamil Nadu to work with industry partners to create and nurture a robust environment for startups to thrive in the state.”

The report further said that “the state ranks among the top startup destinations in India. The government is also encouraging entrepreneurs to come up with innovative solutions for common problems.”

Some of the top IT companies have declared expenditures of Rs 10,950 crore and have created two lakh jobs over the last few years. “The state received FDI inflow of USD 17.8 billion between 2008-15 and ranks third in terms of investment in Information Technology and IT-enabled services sector,” it said.

While Chennai has emerged as a hub for startups, the report said, the state government should focus on creating an entrepreneurial ecosystem, support in skill development, design low-cost credit schemes for start-ups. Tamil Nadu has over 233 electronic hardware technological parks in Sriperumbudur, Oragadam and Mahindra World City, Singaperumal Koil, it said.

Source: Money Control