Tamil Nadu To Develop $100B Electronics Industry By 2025


The state government intends to encourage the development of private ESDM parks with a common infrastructure, amenities and waste-handling facilities to develop the state’s electronics industry.

Tami Nadu is well poised to achieve its target of developing a $100 billion electronics industry in the next five years.

At a press meet organised by the Electronics Industries Association of India (ELCINA) to announce the 12th Source India Summit, state industry secretary S Krishnan said that Tamil Nadu has emerged as one of the major electronics hardware manufacturing and exporting states in the country as global companies are leveraging the well-developed manufacturing system in the State.

The B2B event will be held in Chennai on February 13 and 14 to discuss the challenges faced by the ESDM industry and major industry stakeholders, and to accelerate the growth of Indian electronics hardware manufacturing.

The state government of Tamil Nadu had announced a new electronics policy in 2020 to build a $100 billion electronics system design and manufacturing (ESDM) industry by 2025. Unveiled by former chief minister Edappadi K Palaniswami, the policy aimed to alter the state into a globally competitive ESDM destination.

The policy seeks to elevate Tamil Nadu’s ESDM industry output to $100 billion and to contribute 25% of total electronic exports from India by 2025. The electronics policy has been incorporated to raise Tamil Nadu’s level of value addition in sectors such as mobile handsets, fables chip design, LED products, PCBs, and solar photovoltaic cells, besides medical and automotive electronics.

The state has classified its districts into Class A, B and C for state-level incentives and moved from the Centre’s electronic manufacturing clusters (EMC) scheme. Chennai, Thiruvallur, Kancheepuram, and Chengalpet are classified into category A as units making or assembling electronic hardware and mobile handsets already operate in the region.

ELCINA president and MD, Sanjay Agarwal, acknowledged the efforts of the Tamil Nadu government to accelerate the growth of the electronic hardware manufacturing industry and highlighted the government’s endeavour “to attract at least two major FAB investments to Tamil Nadu in the next three years.”



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