Data Mining & Analytics

Advantage Tamil Nadu

  • High Demand for Data driven solution: With industry-specific problems needing data-driven solutions, many analytics firms are now into the city’s rich domain capabilities.
  • Peer Startup Groups: 22 Business Intelligence startups in Tamil Nadu.
  • Talent Pool: Educational institutions in Chennai curated specialised programs in analytics more than 10–15 years ago, enabling a huge talent pool
  • Cutting Edge Infrastructure: The Government of Tamilnadu (TNSDC) and several private companies (NTT etc..) have started their own data centres at Tamilnadu so the data mining and analytics companies will hugely benefit by availing them.
  • Funding Opportunities: High availability of VC funding for AI and Analytics startups to scale.
  • Government Initiatives: Government Initiatives towards digitisation and Grants, exclusive schemes for Data Mining & Analytics will be an added advantage.
  • Exploring New market & Opportunities: Companies can explore new markets like Surgical Intelligence Bot, Healthcare predictive solution etc..

Sector Incharge

Mahesh Kumar S


Data Analytics Sector Map


Data Mining & Analytics is a process used to turn raw data into useful information. Data analytics as a service is extensively utilized in sectors ranging from production, banking, commerce, healthcare, education, automation and many more fields. It generates significant business discoveries through sophisticated analytics to big sizes of unstructured and structured data that enhances productivity and revenue. Tamil Nadu, particularly, Chennai is fast gaining ground as the analytics hub of India.

The field may have seen significant developments and changes since then. Here are some key trends and potential directions for the future of data mining and analytics:

  • AI and Machine Learning Integration: Data mining and analytics are increasingly leveraging artificial intelligence (AI) and machine learning (ML) techniques to enhance their capabilities. This trend is likely to continue, enabling more advanced and automated data analysis.
  • Big Data and IoT: With the growth of the Internet of Things (IoT) and the increasing volume of data generated, the importance of mining and analyzing big data is expected to grow. Analytics tools will need to adapt to handle massive datasets efficiently.
  • Real-Time Analytics: Businesses are placing greater emphasis on real-time analytics to make immediate decisions. Future data analytics tools will need to provide faster and more responsive insights.
  • Privacy and Ethical Considerations: Data privacy and ethics will remain critical concerns. Future developments will include more robust methods for protecting data and ensuring ethical data usage.
  • Predictive and Prescriptive Analytics: Predictive and prescriptive analytics will become more sophisticated, allowing organizations to not only foresee future trends but also receive actionable recommendations for optimizing operations.
  • Natural Language Processing (NLP): Integrating NLP with analytics tools will enable more advanced text and sentiment analysis, making it easier to extract insights from unstructured data sources such as social media and customer feedback.
  • Quantum Computing: Although in its infancy, quantum computing has the potential to revolutionize data mining and analytics by solving complex problems much faster than classical computers.
  • Edge Analytics: Analyzing data at the edge (closer to where it’s generated) will become more prevalent, particularly in applications like IoT and autonomous systems, reducing the need for transferring large volumes of data.
  • Augmented Analytics: Augmented analytics combines AI and machine learning with analytics tools to automate insights discovery and simplify the analytics process for non-technical users.
  • Interdisciplinary Approach: Data mining and analytics will continue to intersect with other fields like healthcare, finance, and cybersecurity, leading to domain-specific applications and innovations.

Market Potential

The analytics industry recorded a substantial increase of 34.5% on a (y-o-y) basis in 2022, with the market value reaching USD 61.1 billion. The Indian analytics industry is predicted to grow to a market size of $98.0 billion by 2025 and $118.7 billion by 2026 at a CAGR of 26.9%.

The US contributed 50.7% of the total share of India’s analytics outsourced market. the market share contribution of the United Kingdom and Canada has increased from 9.7% and 3.4% in 2021 to 13.7% and 6.8%, respectively, in 2022.

The data analytics industry is projected to create over 11 million jobs by 2026 and increase investments in AI and machine learning by 33.49% in 2022 alone. India’s data analytics industry is anticipated to play a crucial role in the future of Industry 4.0 as well as create significant job opportunities and improve lifestyles.

This industry will prove disruptive and lead to a paradigm shift in future. Similar The growth in the region is largely driven by large first-generation outsourced contracts won by Indian IT Service companies like TCS, Infosys, Wipro and others.

Current Scenario in Tamil Nadu

Tamil Nadu-Chennai holds sixth place in the list with 8.4% of the total analytics market share in 2022. There was an increase of 0.3pp on a y-o-y basis. The median employee experience for Chennai increased significantly to 8.2 in 2021 from 7.2 in 2020.

The key contributors to the overall growth are Travel and transport, Energy and utilities, and Engineering and manufacturing industries, Almost 31.0% of analytics professionals work in companies with 1-200 employees.28.1% of analytics professionals in 2021 are women. Chennai saw the highest increase in its median employee experience.

The median increased from 7.2 years in 2020 to 8.2 years in 2021, There 241 Artificial intelligence Startups in Tamil Nadu. The startup ecosystem started emerging in Tamil Nadu.

Future Scope

Data is the new oil, The Government of Tamil Nadu had taken several initiatives to boost the Data mining and Analytics sectors like opening TIDEL PARKS, StartupTN had several schemes to support startups.

  • Talking about scalability, the demand for MLOP engineers has soared in the last year. Hence, with such high demand, these areas show high potential for growth in the coming years. Many processes in the Retail & e-commerce industry have now been automated and have achieved stability
  • Strong IT Ecosystem
  • Affordable talent workforce
  • Government Support


Union Government

  • India has been investing heavily in big data to increase the efficiency of its governance since 2014. About 75% of big data is helping government departments to improve the lifestyle of its citizens. The government has undertaken many initiatives to create large platforms.
  • Department of Science & Technology (DST) has recently initiated a new programme to promote Big Data Science, Technology and Applications. For fostering research in this high potential emerging area, a BDI programme support scheme is launched. Following are broad streams under which financial support shall be provided to quality proposals in Grant-InAid mode.

Tamil Nadu Government

Data Policy

Tamil Nadu Government is acutely aware of the need for good quality data in enabling Good Governance to the citizens. The Economic Advisory Council has encouraged us to use data for improving governance. The use and sharing of open data will also improve transparency. We have committed ourselves to use data to improve decision making, transparency and providing services to the citizens


  • Creating a robust workforce for the development of the data mining and analytics sector in India requires a strategic approach that considers various factors such as skills, infrastructure, roles, and industry trends.
  • Managed office and coworking space provider Work Easy Space Solutions Private Limited is looking at operationalizing one lakh sqft in Coimbatore, Tenkasi, Madurai, Salem and Trichy in next nine months to one year. the average rental per sqft in Chennai is ₹60-₹65, it is ₹30 -₹35 per sqft in tier 2 and 3 locations. Overall, the set-up cost for companies in tier 2 & 3 cities, which includes real estate and human capital, is 20%-30% cheaper than in tier 1 cities.The state government’s Elcot IT-SEZ parks are also benefiting with increased bookings for its new IT parks and those under construction in Coimbatore, Trichy and Madurai.The state government too recently announced a tidel park for Madurai, even as it spearheads construction of tidel neo parks (mini IT parks) in Ooty, Vellore, Tirupur, Villupuram, Tuticorin, Salem and Thanjavur.
  • Specialist staffing firm Xpheno, shared total employment in the state’s technology sector crossed the one million (10 lakh) mark in the quarter ended June 2022, TN contributes nearly 1/6th of India’s tech workforce, but is still behind Karnataka and Maharashtra, which are tied at first spot TN provided more than 7.5 lakh jobs. The more than 30% growth since March 2020 has been powered by hyperactive hiring in tech and establishment of more global capability centres in TN. Large-scale work-from-home migration during the pandemic has also contributed to the rise in the state’s active tech workforce. The growth seen beyond Chennai, with many tier-2 and tier-3 centres attracting tech talent, is an important factor for sustainable human capital growth. This will also drive a comparative cost advantage for enterprises seeking tech services Application full stack development and data analytics are top skills of the techies here Reverse migration is a massive opportunity for enterprises to capitalize on low operating costs in satellite offices based out of these location. The average starting pay package too has been rising depending on the college and skill sets.Data mining and analytics require a skilled team of data scientists, analysts, and software engineers. You will need to budget for competitive salaries, benefits, and training for your employees.
  • As enterprises and industries increasingly rely on edge computing for low-latency applications, tier-II cities are poised to become crucial players in India’s data centre landscape, Cities like Pune, Ahmedabad, Jaipur, and Coimbatore are seen to be ideal choices for expansion of the data centre market. “These cities also have relatively lower operational costs, including real estate, power, and labour, compared to markets like Mumbai, Many global players are evaluating expansion into smaller cities by setting up mini DCs or ‘edge data centres’, typically of less than 5 MW in size. Large DCs tend to be over 100 MW. This rapid data center expansion creates a significant demand for a skilled workforce equipped with specialized capabilities spanning structural design, cooling design, sustainability experts, edge compute consultants, AIOps, and automation.A startup hub facility that will house all amenities and support needed by entrepreneurs to start a business is coming up at Nandambakkam, Chennai, at a cost of Rs75 crore. Data security is crucial in this field. Invest in robust cybersecurity measures to protect client data.
  • Policy makers have historically focused on getting the maximum out of the state’s traditional strengths, heavy industries and MSMEs. But earlier this year, the state’s budget set the tone for a new TN that is also focused on the innovation economy. The current government has recognised that the state needs the new-age technologies sector and startups to compete with other industrialised states and become a $1 trillion economy. As a first step, the government revamped the erstwhile Entrepreneurship Development Institute and set upTANSIM ( Tamil Nadu Startup AndInnovation Mission), a separate body with a professional, non-political appointee to steer the startup ecosystem in the state. TANSIM has made inclusive entrepreneurship its focus and has taken the message of entrepreneurship being “a way of life” to every corner of the state. Startup challenges,pitch events, and incubation efforts are also being strengthened to support the goal of creating 10,000 new startups in the next 3-4 years. The state budget in March allocated more than Rs. 150 crore for the startup ecosystem, which included a corpus of Rs. 50 crore for TANSIM to support startups by Scheduled Caste And Scheduled Tribe (SC and ST) entrepreneurs. It also set up a Rs. 50 crore ‘Emerging Sector Seed Fund’ to make equity investments undeserving startups based in the state. Procedures Have also been relaxed for the government to directly procure innovative products from startups. While these have all emerged as the right signals to make TN a serious contender in the knowledge economy, the state houses only five out of the country’s 100 unicorns (startups with over $1 billion valuation).The government has created effective structures and picked the right set of leaders to kick-start the startup ecosystem 2.0 in the state. The state is now at $290 bn GSDP and we are now targeting $1tn by 2030. Having a conducive entrepreneurship environment is an important aspect to make this happen.
  • You’ll need working capital to cover day-to-day operational expenses until your business becomes profitable. This includes salaries, rent, utilities, and other ongoing costs. It’s challenging to provide an exact figure without specific details about your business plan, the scale of operations, and the location in India where you intend to establish your company. However, a rough estimate for a small to medium-sized data mining and analytics company in Chennai could range from INR 50 lakhs to INR 2 crores or more, depending on the factors mentioned above
  • It’s advisable to consult with a financial advisor or business consultant who can help you create a more accurate financial projection based on your unique business requirements and market conditions at the time of your startup. Additionally, consider seeking funding through investors, loans, or grants to support by government for your initial capital needs.