Tamil Nadu’s electronics export performance has experienced significant growth in recent years, thanks to a strong industrial ecosystem established by Guidance Tamil Nadu, an investment facilitation agency. The state benefits from critical infrastructure, cost-effective logistics and connectivity, a trainable workforce, and stable utility services, which have contributed to the development of a robust supply chain and large-scale manufacturing operations in the electronics sector.
In the fiscal year 2022-23, Tamil Nadu witnessed a remarkable surge in electronics exports, reaching US$5.37 billion, nearly tripling the previous year’s figure of US$1.86 billion. This exceptional growth propelled Tamil Nadu to the top spot in FY 2023, surpassing states like Uttar Pradesh, Karnataka, and Maharashtra. During FY 2023, Tamil Nadu exported electronic goods worth US$5.37 billion, with Uttar Pradesh ranking second at US$4.90 billion and Karnataka in third place at US$4.52 billion.
Guidance Tamil Nadu attributes this success to the influx of new industry players and the expansion of the existing manufacturing base, indicating the confidence of businesses in operating in Tamil Nadu. The state has implemented key policy measures to foster innovation, attract investments, and promote entrepreneurship.
Tamil Nadu’s electronics sector is particularly ripe for exports, with a significant portion of the state’s output comprising computers and related peripheral equipment such as desktops, servers, and printers. The Kancheepuram District hosts two sector-specific Special Economic Zones (SEZs) dedicated to the electronic hardware sector: the Multi Sector SEZ in Oragadam and the Multi Sector SEZ in Sriperumbudur. These SEZs serve as specialized zones to foster growth and development in the electronic hardware industry.
The entry of prominent electronics manufacturers into Tamil Nadu, including Foxconn, Tata Electronics, Salcomp, Siemens, Sony, ABB, and Pegatron, has played a vital role in the state’s success in export-oriented production. For example, Foxconn has been producing the iPhone 14 in Sriperumbudur and has contributed to over 40 percent of the employment created by the three Apple contract manufacturers. Pegatron, located in Singaperumalkovil, is responsible for assembling Apple’s entry-level models, while Wistron in Hosur produces eight iPhone lines. It’s worth noting that Tata Group has taken control of Wistron’s operations in India as of May 2023.
In terms of India’s overall electronics goods exports, Tamil Nadu’s contribution has grown significantly. In FY 2020-21, the state accounted for just 11.98 percent of India’s total electronics goods exports, amounting to US$15.59 billion. However, in the subsequent year, its share skyrocketed to 22.83 percent out of a total value of US$23.57 billion, according to government data.
In summary, Tamil Nadu’s electronics sector has experienced remarkable growth in recent years, positioning the state as a prominent exporter in India. With a strong industrial ecosystem, supportive infrastructure, and the presence of major electronics manufacturers, Tamil Nadu has attracted significant investments and expanded its manufacturing base. This growth trajectory highlights the state’s potential for continued success in the electronics industry and reinforces its position as a key player in India’s export-oriented production.
