Tamilnadu is all set to be the Fintech Capital of the Country

Chennai: Tamilnadu ranks first in acquiring more angel investors. Chief Minister M.K.Stalin succeeded in this process. After a huge success in bringing maximum angel investments, Tamilnadu is all set to transform the state into a leading global destination for fintech firms.

What is a Fintech City?

Since M.K. Stalin's DMK party regained the rule of the State, various schemes and initiatives were getting executed to develop Tamilnadu's growth to an international standard. One such initiative was 'CM DashBoard'. In a bid to bring about a paradigm change in governance, M.K.Stalin launched this 'CM Dashboard'. This dashboard will allow the Chief Minister to monitor the project in real-time and issue necessary instructions if needed. Many Global leaders are practising this system to run a government with highly accurate statistical data.

Instead of just using the dashboard as it is used in other parts of the world, CM Stalin upgraded and customised it with very many additional features. Another major development was made in the Fintech department of the state. CM Stalin released the 'FinTech Policy 2021' with a vision to transform the State into a leading global destination for fintech firms with Chennai as its Capital hub by 2025.

What is Fintech?

Tamilnadu is the second largest economy of India with 19.02 GSDP in the 2021-22 Financial year. As per the 2021-22 financial status, the per capita income of the state is 94% higher than the national average. The most crucial thing is, When the global economy stagnated during the COVID lockdown, Tamilnadu managed to tackle the challenges and boosted its economical status in the country.

After the COVID lockdown period, usage of mobile financial applications increased. PhonePe and GPay became our day-to-day essential mobile apps. This revolution changed the financial world completely. FinTech firms attained greater development. Soon the entire world will revolve around Fintech firms and their related services. So, as a part of the huge transformation Tamilnadu government managed to establish a Fin-tech city.

Technology and its advancements were never new to the state. If there is an IT firm that exists in any part of the world, we can definitely find a Tamilian working there. Today many tech giants like Google are led by a Tamil CEO. Tamilnadu is always growing along with the developments of the IT sector.

In Tamilnadu, the very first step was initiated by the former chief minister M. Karunanidhi. He revolutionised the IT industry by constructing the State's first 'Tidel Park'. For its future progress, he developed Chennai's entire infrastructure. Current Chief Minister M.K. Stalin took over its evolution in a contemporary way. According to Financial experts' opinion, "The future depends on the Fin-techs. By 2023 the Fin-tech sector will decide the country's entire economical status by a majority of 335 billion US dollars. And Tamilnadu government created a plan adjacent to such huge transformation".

Future of Tamilnadu:

With this scheme, Tamilnadu is all set to become a fintech city. The state government offered many concessions to MNC companies. Tamilnadu government is ready to offer various concessions for 3 years period of time for any Fin-tech with more than ₹50 crore investment.

New start-up companies will receive ₹5 crore as an initial investment and ₹20 crore financial aid for upcoming companies through TIDCO by the Stalin Government. By providing all these concessions for 3 years the state will get an employment opportunities for 300 people per company as per the Government's conditions.

This way there are high chances of fresh start-up companies increasing in the state with a rise in employment opportunities which ultimately improve the infrastructure of the state. Just to observe the Fin-tech sector and its functionings CM Stalin has appointed a separate governing team. As an initial step, Tamilnadu government has kick-started the construction of a FinTech city in Chennai, Nandambakkam.

Coimbatore, Trichy and Madurai:

A fintech city in Chennai will be developed in two phases at Nandambakkam and Kavanur, as Tamilnadu Finance Minister Palanivel Thiagarajan announced last year. The first phase will be developed at Nandambakkam at an estimated cost of ₹165 crore.

In the 2021-22 Tamilnadu Budget, the state finance minister registered his hope for the fin-tech industry's development by promising to develop a separate 'Fin-tech Cell' in the state. Apart from Chennai, the plan expands to tier-2 cities like Madurai, Trichy and Coimbatore.

Chennai's Poonamallee is also getting developed into a fin-tech hub with five IT parks along with additional 4 metro route constructions. Larsen and Toubro (L&T) have been awarded the contract for the construction of an industrial campus of 6.5 million square feet. RMZ One paramount IT industry to be constructed in a 7 million square feet site.

A Whopping ₹993 crore budget for a business complex:

As a part of transforming Chennai into a fin-tech city, Adyar is bound to get a huge upgrade. With a metro station, Adyar is about to get a 9-storey complex in a whopping ₹993 crore budget. The Complex will constitute a Mall with 10 Multiplex theatres. This Adyar metro will get a 4-story underground construction with 2 storeys separately allocated for bus stands. In the same way, Tambaram, T. Nagar, Saidapet, Mandaveli and Thiruvanmiyur Bus depots are about to get upgraded.