Fri, Dec 27, 2024

Tamil Nadu's Electronics Sector Soars to New Heights in 2024

Technology
Sarah J

Sarah J

Posted on Fri, Dec 27, 2024

2 min read

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Tamil Nadu has solidified its position as India's leading exporter of electronic products, achieving a record-breaking $9.56 billion in electronics exports for the fiscal year 2023-24. This remarkable figure represents 32.84% of India's total electronic goods exports, which stood at $29.12 billion for the same period.


The state's electronics sector has shown impressive growth, nearly doubling its export value from $5.37 billion in FY 2022-23. This surge in exports has placed Tamil Nadu far ahead of other states, with Karnataka, the second-largest exporter, recording $4.6 billion (15.78% of national share) and Uttar Pradesh following closely with $4.46 billion (15.32%).


Several factors have contributed to Tamil Nadu's success in the electronics sector. The state has attracted significant investments from global electronics manufacturers, particularly those in the Apple supply chain. Companies like Foxconn, Pegatron, and Salcomp have established or expanded their operations in the state, driven in part by the global "China-Plus-One" strategy adopted by many multinational corporations.


In September 2024, American communications giant Cisco launched its first Indian plant in Sriperumbudur, in partnership with global electronics manufacturer Flex. This move has further strengthened Tamil Nadu's position in the high-tech manufacturing ecosystem.


The state government has played a crucial role in fostering this growth. In January 2024, Tamil Nadu unveiled its "Semiconductor and Advanced Electronics Policy 2024" at the Global Investors Meet. This policy aims to accelerate growth in the sector and create a skilled talent pool of 200,000 people by 2030.


Recent investments have further bolstered the state's electronics manufacturing capabilities. Tata Electronics announced a ₹7,000 crore investment to expand its components plant in Hosur, while Foxconn committed ₹13,000 crore for further investments. US-based Jabil also announced plans to invest ₹2,000 crore in setting up a manufacturing facility in Tiruchirapalli, expected to create around 5,000 jobs.


The success of Tamil Nadu's electronics sector extends beyond exports. The state has also emerged as the largest market for consumer electronics products in India, with e-commerce giant Amazon reporting a 35% year-on-year growth in the sector, the highest across the country.


Looking ahead, Tamil Nadu's industries minister, TRB Rajaa, expressed confidence that the state's electronics exports will cross the $12 billion mark in FY 2024-25. The government is focusing on attracting investments further down the value chain, particularly in the Apple supply ecosystem.


Tamil Nadu's achievements in the electronics sector demonstrate the state's pivotal role in India's economic growth. With its robust infrastructure, skilled workforce, and supportive government policies, Tamil Nadu is well-positioned to maintain its leadership in electronics manufacturing and exports in the coming years.


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